What Is a Corporate Strategy?

Corporate strategy is a collective name for various corporate strategies, including both competition strategies, marketing strategies, development strategies, brand strategies, financing strategies, technology development strategies, talent development strategies, and resource development strategies.

Corporate Strategy

(Comprehensive corporate planning)

Corporate strategy is a collective name for various corporate strategies, including both competition strategies, marketing strategies, development strategies, brand strategies, financing strategies, technology development strategies, talent development strategies, and resource development strategies.

Enterprise strategy refers to the selection of suitable business areas and products according to the changes of the environment and the resources and strength of the enterprise, forming its own core competitiveness, and winning the competition through differentiation. ^[1]

Corporate strategy is a collective name for various corporate strategies, including both competitive strategies and

Enterprise strategy types include: development strategy, stable strategy, contraction strategy, merger and acquisition strategy, cost leadership strategy, differentiation strategy and concentration strategy.

Developmental strategies include

I. Strategic Analysis

Strategic analysis consists of summarizing the key factors affecting the development of an enterprise and determining the specific influencing factors in the strategic selection step. It includes the following three main aspects:

Determine the mission and goals of the enterprise. Use the mission and goals of the company as the basis for formulating and evaluating corporate strategies.

Analyze the external environment. External environment includes macro environment and micro environment.

(3) Analysis of internal conditions. Strategic analysis should understand the relative position of the enterprise itself, what resources it has and its strategic capabilities; understand the interest expectations of relevant stakeholders in the enterprise, and how these stakeholders will react during the strategy formulation, evaluation and implementation process.

Strategic choices

The problem to be solved in the strategic selection phase is "where is the enterprise going". The steps are divided into three steps:

1. Develop strategic options

According to the degree of involvement of managers at different levels in strategy analysis and strategy selection, the methods of strategy formation are divided into three forms:

top down. The top management of the company first formulates the overall strategy of the enterprise, and then the subordinate departments embody the overall strategy of the enterprise according to their own actual conditions to form a systematic strategic plan.

Bottom-up. The top management of the enterprise does not make specific regulations for the subordinate departments, but requires each department to actively submit strategic plans.

(3) Combine up and down. The top management of the company and the managers of the various subordinate departments participate together, and through the communication and consultation of lower and higher management, formulate an appropriate strategy.

The main difference between the three forms is the grasp of the degree of centralization and decentralization in strategy formulation.

2. Assess strategic options

Two criteria are usually used to evaluate strategic options: one is to consider whether the selected strategy has taken advantage of the enterprise, overcome its disadvantages, and used opportunities to reduce the threat to a minimum; the other is to consider whether the selected strategy can be used by the enterprise Accepted by stakeholders.

3. Choose a strategy

Refers to the final strategic decision, which determines the strategy to be implemented. If there are inconsistencies in the evaluation of multiple strategic solutions with multiple indicators, the following methods can be considered to determine the final strategy:

Use corporate goals as the basis for choosing a strategy.

Submit to higher management for approval.

(3) Engage external agencies.

Strategic policies and plans.

three,

When setting up tasks, enterprises should consider the following factors:

1. Corporate history and culture

2. Intent of business owner and top management

3. Corporate external environment and its changes

4. Enterprise resource conditions

5. Core competences and advantages of the enterprise

Enterprise's goal

Corporate goals are:

1. Corporate profitability goals

2. Goal of productivity

3. Product structure and product image goals

4. Objective of market competitive position

In order for a company's goals to be practicable, the goals must be determined to meet the following requirements:

1. Enterprise goals should meet the requirements of the company's basic tasks

2. Business goals must be clear, specific, and quantified as much as possible

3. Enterprise goals should be guaranteed by corresponding strategies and measures

The Boston Consulting Group is a well-known management consulting company in the United States. The company advocates that companies use the "market growth rate-market share matrix" to evaluate the company's existing products or businesses.

The first factor affecting strategy should be vision planning. Mission, core values and vision are the three components of vision planning, and also the most core part of an enterprise when it exists. In the process of strategic planning, the mission and vision always guide the direction and requirements of strategy formulation; and core values guide the way of thinking and implementing strategies.

The second factor affecting strategic management is the external environment. This external environment includes the macro environment and the industrial environment. The so-called macro environment mainly depends on the economic conditions of the region and the economic conditions of each economic cycle. The industrial environment can learn from Porter's five-force model, including suppliers, customers, competitors, substitutes and potential competitors.

At the same time, strategic management is also related to internal factors. The internal factors include two aspects. The first is the so-called core competitiveness of the company that Hamel and Prahalad promote.

The second is corporate culture. The influence of corporate culture on company strategy mainly includes the following points (Henry Mintzberg's "Strategy History"):

1,

Strategic form refers to the strategic approach and strategic countermeasures adopted by the enterprise. According to the form of expression, it can be divided into three forms: expansion, stability, and contraction.

Enterprise strategy is a general and guiding plan for setting a long-term goal and carrying out the trajectory of achieving the goal. It belongs to the category of macro management, and has six main characteristics: guiding, overall, long-term, competitive, systematic and risky.

1. Defensive strategic organization

2. Pioneering Strategic Organization

3. Analytical Strategic Organization

4. Passive Reflective Strategic Organization

The strategy is determined, and how to establish a strategy execution system is not difficult. The strategic execution system consists of four levels: strategy (direction), strategy (organization), tactics, and combat power. These four levels are indispensable. However, in actual operation, when an enterprise talks about strategic execution, it is to set indicators and allocate resources. It goes beyond the strategic layer and directly goes to the specific tactical and planning layer, and the execution layer goes up.

The so-called strategy is how to organize resources to implement the strategy. How to implement the strategy requires a plan. Small businesses can be combined into one, but group strategic planning must be done in two steps, and strategies must be formed first.

What matters most at the strategic level is organization. The strategy determines the organization, the organization inherits the strategy, and the decisive factors are in the organization and implemented in the organization. It needs to be emphasized that the organization here is not only what we usually call the organizational structure, but also refers to the organizational state and layout. The organizational structure is only the last carrier and framework of the organizational state and layout.

Corporate strategic budgeting is a management method that is oriented to corporate strategy, with strategic goals as the starting point, and by optimizing the allocation of corporate resources and implementing rolling, flexible process control procedures to ensure that the strategic goals are achieved. Strategic budget management plays an important role in enterprise management. Enterprises should find a more effective implementation method for each process of strategic budget management according to their specific conditions such as scale, business scope, and organizational form, and give full play to the role of this enterprise management method .

Achieve "same desire" through strategic combing

Strategic grooming is often easily overlooked by companies. Of course, equity is a method of linking incentive objects and enterprises as a community, but whether the goal of joint profits for the enterprise and employees depends on the value of equity, and the value of equity depends on the development level of the enterprise. If a company does not plan a clear strategic goal and development path before equity incentives, equity will not have value content.

At the same time, whether employees agree with the corporate strategy is also a key evaluation factor to evaluate whether the incentive object is worth motivating. Imagine, if the backbone of the company that is the target of the incentive does not agree with the corporate strategy, or the so-called backbone employees cannot find a clear positioning and role in the corporate strategy, how effective is the equity incentive?

Chinese equity incentive expert Xue Zhongxing analyzed that the purpose of equity incentives is to connect enterprises and key employees as a community. Equity incentives are only a binder, and the core of this joint activity must be a long-term corporate strategic plan.

Identifying incentive objects and incentive quotas from a strategic perspective

After rationalizing the relationship between strategy and equity incentives, the recognition of incentive objects and incentive quotas becomes clearer. The general object of equity incentives must be those key employees who can play a key role in corporate strategy. From the determination of specific incentive objects, it is necessary to identify key employees at strategic nodes through corporate strategy analysis, and determine the premise of the overall quota of equity incentives and allow employees to obtain equity quotas that match their role in the realization of the strategy Under the basic principle, the specific incentive amount of each incentive object is determined through various methods, such as dual comparison method or Hai's evaluation method with more emphasis on quantification. ^[2]

In enterprise management, strategic management refers to the setting of strategic goals of an enterprise according to the external environment and internal conditions of the organization, planning to ensure the correct implementation of the goals, and relying on the internal capabilities of the company to implement such planning and decision-making. The following "Boss" magazine briefly introduces the precautions for implementing strategic management in enterprises:

1. Valuing and updating strategy

Because strategic management is not only planning "where are we going", but also planning how to eliminate obsolete and obsolete things, and taking "whether the plan continues to be effective" as a guide to attach importance to the evaluation and update of strategy, which enables business managers to continuously Starting from a new starting point, we will continuously explore the external environment and corporate strategy, and increase our awareness of innovation.

2. Attach importance to the study of business environment

Because strategic management incorporates the growth and development of an enterprise into a changing environment, management must base its decisions on future environmental changes, which makes corporate managers attach importance to the study of the operating environment and correctly determine the company's Development direction, choose the company's appropriate business field or product-market field, so as to better grasp the opportunities provided by the external environment, enhance the adaptability of business operations to the external environment, so that the two achieve the best combination.

3. Pay attention to the implementation of strategy

Because strategic management does not just stay on strategic analysis and strategy formulation, but considers the implementation of strategy as part of its management, which enables the company's strategy to continuously evaluate and modify the strategy according to changes in the environment in daily production and operation activities. To continuously improve the corporate strategy, but also to continuously improve the strategic management itself. This recurring process highlights the guiding role of strategy in business management practices.