CORPORATE CENTRES

Role of the Corporate Centers



Role of the Corporate Centers

Introduction

For any company or organization to prosper and flourish in the longer run, it is very essential that it plan carefully all the strategies and policies in the beginning of establishing or starting the business. One of the most important strategies that a company needs to plan in order to achieve all its pre set goals, are the Corporate Level Strategies. These strategies can simply be defined as a set of guidelines that identifies the industries and national markets a business or an organization plans to compete. These strategies or guidelines set the basis of planning and implementation of further strategies and policies. Therefore, companies all over the globe take into account all the domains and sub areas of Corporate Level Strategies in order to define clearly its competitors and overall market trends.

Discussion

Corporate Levels in the Strategy Hierarchy

The strategy hierarchy can be categorized into four main levels; these include Enterprise level strategy, corporate level strategies, business level strategies and at last functional level strategies. These corporate level strategies are further classified into three classes. Each separate division or class possesses its own specific strategic planning processes. Moreover, the outputs of a corporate level strategy are usually in the form of various performance targets for these classes cannot be ignored by the subsidiary unit.

Strategic Issues at the Corporate Level

A corporate level strategy is further divided in to three hierarchical stages. These include Diversification strategy, parenting strategy and SBU Management. There are a number of issues a company can face while planning its corporate level strategies. One of these include deciding the size of the company that needs to be decided in the early stages, deciding the competencies that will help in establishing a strong business and defining the products and services ...