Corporate strategy performs the following Five functions:
- 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.
- It focuses attention upon changes in the organizational set up, administration of organizational process affecting behaviour and the development of effective leadership.
- 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.
- It furnishes the management with a perspective whereby, the latter gives equal importance to present and future opportunities.
- It provides the management with a mechanism to cope with highly complex environment characterized by diversity of cultural, social, political and competitive forces.