CORPORATE STRATEGY ANALYSIS 2022

Running head: CORPORATE STRATEGY
Corporate Strategy
9/6/2019

CORPORATE STRATEGY 1
Corporate Strategy
The aim of this essay is to discuss regarding the concept and important aspects of the
corporate strategy with support to the real examples. Corporate Strategy includes the
corporate action of the firm with the motive to attain the objective of competitive advantage.
A corporate strategy involves an evidently definite, long-term vision that businesses set,
searching to make corporate value and inspire the employees to execute the suitable actions
for attaining the satisfaction of the customer. Besides this, the corporate strategy is said to be
the on-going procedure that demands for the constant effort for gaining the trust of the
investors over company through their money, thus augmenting the equity of the company
(Linnenluecke & Griffiths, 2010). The key components of the corporate strategy are
discussed below:
Allocation of Resources: This component of a business mostly concentrates on two
aspects that are people and capital. In the effort to increase the entire firm’s value, leaders
should regulate how to assign these resources to the different units of the business. The
company gets involve in identifying the competencies of the employees and confirm that they
are properly distributed in the entire company. Besides this, it is also very important for the
business to ensure that capital is allocated in the business properly such that it can earn the
high return (Corporate Finance Institute, 2019).
Organizational Design – This component of the corporate strategy is comprised of
confirming that the business has the required corporate structure and associated system in
place for generating increased amount of value. Aspects that can be considered by the
business managers are role of head office and organizations structure. The head office of the
company takes important decisions and has major influence on the business unit’s strategy

CORPORATE STRATEGY 2
(Bender, 2013). On the other hand, the organizational structure defines how initiatives and
promises of the business can be divided into small parts or projects.
Portfolio Management – This component of the corporate strategy considers the way
different units of the business complement with each other, correlations and decides where
the company will take actions.
Strategic Trade-offs – The most challenging component of the corporate strategy is to
balance the trade-offs among return and risk all over the business. It is very essential to
follow a holistic view for the business and confirm that the anticipated range is risk
management and generation of the return (Hahn, Figge, Pinkse & Preuss, 2010). Under risk
management the business risk are majorly based on the strategies to select that to be pursued.
On the other hand, high risk strategies generate the possibility of the huge return rate.
Examples of the Corporate Strategies adopted by Businesses
Diversification – Diversification is said to be a strategy of risk management that
works to mix the range of investments in a single portfolio. The foundation of this technique
is that the portfolio framed of diverse types of assets on average, harvest greater long-term
returns and decreasing risk of individual security or holding (Keren, Lev-Maor & Ast, 2010).
There are number of businesses that have adopted the strategy of diversification. For instance
Apple Inc. is one of the leading businesses in the technology industry by involving in the
computer hardware, financial technology, Semiconductors, Cloud Computing, Computer
Software, Artificial Intelligence, consumer electronics, etc. (Yarow, 2018). This company
excels in all the fields where it operates its business due to its skilled and competent
workforce.