Corporate strategy performs the following Five functions:

1. It provides a dual approach to problem solving. Firstly, it exploits the most effective means to overcome difficulties and face competition. Secondly, it assists in the deployment of scarce resources among critical activities.
2. It focuses attention upon changes in the organizational set up, administration of organizational process affecting behaviour and the development of effective leadership.
3. It offers a technique to manage changes. The management is totally prepared to anticipate, respond and influence to look at changes. It also offers a different way of thinking.
4. It furnishes the management with a perspective whereby, the latter gives equal importance to present and future opportunities.
5. It provides the management with a mechanism to cope with highly complex environment characterized by diversity of cultural, social, political and competitive forces.