Corporate level strategy:

It is applicable to multi-business organization. All levels above business unit level in the corporate structure, constitute corporate parent and has no direct interaction with buyers and competitors . The issues covered in corporate level strategy include : Scope decisions reflected in Product diversity, international diversity. value creation for different business units , the role to be played as a corporate parent for managing the business portfolio.

Corporate level strategy:

Diversification is a strategy that takes organization to New Markets with New Products. Benefits of diversification are Gains in efficiency due to economies of scope and synergy. Benefitting by applying Corporate Managerial Capabilities. Increasing Market Power by having ability to cross subsidize. To spread risk across businesses Meeting expectations of powerful stake holders.

Corporate level strategy:

Diversification Types: Related: Is where organization extends beyond current products and markets, but within the capabilities or value network of the organization. Unrelated: Development of products/services beyond current capabilities or value network. This is also called as conglomerate strategy.

Corporate level strategy:

Diversification and its effect on performance: The graph of extent of diversity (x axis)and performance is inverted U shape curve suggesting that related and limited diversity is beneficial to an organization.

Corporate level strategy:

Reasons for international diversity: Globalization of Markets and competition. Following your buyer/customer. Presence in home market of your global customers. Exploiting differences between countries and geographical regions. Internationalization of value adding activities that has taken place. Enhancing knowledge base. Economic benefits where product modification is least. Risk reduction.

Corporate level strategy:

International Market selection : Factors considered are Macro economic conditions. GDP/Disposable income/currancy stability/. Political environment Infrastructure Similarity of cultural norms and social structure Political and legal risks.

Corporate level strategy:

International Market entry strategies: Exporting Contractual arrangements through licensing and franchising. Joint venture and alliances. Foreign Direct Investment including acquisitions. Green field investments.

Corporate level strategy:

International Value Network concept: It includes decisions about location of elements of an organizations value chain. The decisions try to exploit differences between countries to conduct each value chain activity efficiently and effectively by following strategies like JV, FDI, Global sourcing.

Corporate level strategy:

International Diversity challenges: Global Local dilemma Concentration of assets and productive capabilities. Strategies to address above challenges: Multi domestic strategy. Global strategy.

Corporate level strategy:

Value creation by Corporate Parent: Identification and establishment of value adding activities. Intervening within businesses to improve overall organizational performance. Monitor performance of SBUs. Challenge and develop strategic ambition of SBU. Coaching and training of people. Develop strategic capability. Achieving synergy by encouraging co operation and doing co ordination. Offering central services and resources.

Corporate level strategy:

Value creation by Corporate Parent: Providing expertise and service not available in small units. Knowledge creation and sharing ,to foster innovation and learning.

Corporate level strategy:

Corporate Parent: Roles Portfolio Manager: Acts as an agent of financial markets and stake holders. Identifies and acquires under valued businesses/assets and improves them to get higher valuation. Divests from low performing businesses.

Corporate level strategy:

Corporate Parent: Roles Synergy Manager: Enhances value across businesses by managing synergies across SBUs. Makes possible sharing of resources, skills, competencies. Parental developer: Employ own competencies to add value. Builds parenting skills appropriate to particular business units.

Corporate level strategy:

Business Portfolio Management: Performed by using tools with an objective of : Balancing the needs of corporation and relation to its markets. Degree of fit within SBUs in portfolio. Adequacy of attractiveness of business units current and future profitability and growth rate.

Corporate level strategy:

Tools used for Portfolio Management.
BCG (Growth/share matrix.) and related terms. GE Nine cell grid (Directional Policy Matrix) Arthur D. Little Life cycle approach.