In the present day competitive environment, no business organization can dream of survival without formulating appropriate corporate strategy. As the environment is continuously changing, the need for corporate strategic framework is more specific. The following areas clearly show the importance of corporate strategy:
- Corporate strategy rationalises allocation of scarce resources.
- Corporate strategy motivates employees examples to shape their work in the context of shared corporate goals.
- Strategy assists management to meet unanticipated future changes.
- Organizational effectiveness is ensured through implementing and evaluating the strategy.
- Corporate strategy is a powerful tool to management to deal with the future which is uncertain and hazy in all respects.
- Corporate strategy improves the capability of management in coping with the volatile external environmental forces.
- Corporate strategy encourages the management to choose the best course of action to realize the objectives.
- Strategy planning system provides an objective basis for measuring performance.