11. Key Questions of Corporate/Firm-level Strategies 1. What businesses should the corporation/enterprise be in? 2. How should the corporate/G.O. office manage the array of business units (GBU’s/SBU’s/ Wholly owed subsidiaries) Corporate Strategy is what makes the corporate whole add up to more than the sum of its business unit parts
12. Organizational Growth: External and/or Internal External and Internal Growth Strategy One that involves the attainment of specific growth objectives by increasing the level of an organization’s capabilities Typical growth strategies include goals for: Increase in sales revenues Profits Other balanced scorecard performance measures
16. Corporate Strategy Corporate objectives Profitability ROI Return on shareholder’s equity $ profit etc. Discounted cash flow Market share
17. Corporate Development Strategy Market Penetration Product Development Current Markets Market Development New Markets Diversification New Products Current Products
18. Corporate Strategy Corporate development strategy Market penetration Market development Product development Diversification forward integration backward integration related (concentric) diversification unrelated (conglomerate) diversification
19. Corporate Strategy Resource allocation Boston Consulting Group model (Boyd, Walker & Larreche, pp. 41, 42) Industry attractiveness -- business position matrix (General Electric model) (Boyd, Walker & Larreche, p. 44)
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