Corporate Strategy

Question 1

What is Corporate Strategy?

Answer 1

Corporate strategy is primarily about the choice of direction for a firm as a whole and the management of its business or product portfolio.

Question 2

The importance of corporate strategy to a firm’s
survival and success.

Answer 2

1. The firm’s overall orientation toward growth, stability, or retrenchment (directional
   strategy)
2. The industries or markets in which the firm competes through its products and business units (portfolio analysis)
3. The manner in which management coordinates activities, transfers resources, and cultivates capabilities among product lines and business units (parenting strategy).