CORPORATE STRATEGY

Corporate Strategy, Strategy Process

Differentiation between a corporate strategy and an owner strategy:

The corporate strategy encompasses the entire organization and pertains to the strategic decisions made to lead the company as a whole and achieve competitive advantages.

The owner's strategy focuses on the preferences and goals of the owners or shareholders and addresses issues such as return expectations, risk tolerance, and long-term vision.

In many cases, the corporate strategy and the owner's strategy should align to ensure clear direction and successful implementation. However, understanding the expectations and preferences of the owners is important to ensure that the corporate strategy supports the goals and interests of the owners.

The development of a corporate strategy is a complex process that requires careful planning and analysis. Here are the key steps :

Preparations, Analysis of the current situation
Establishment of the corporate vision and mission
Setting strategic objectives
Development of strategic options
Selection of the best strategy
Implementation of the strategy
Monitoring and adjustment

1. Preparations, Analysis of the current situation:

Conducting a comprehensive internal analysis to identify the strengths and weaknesses of the company, as well as considering the financial situation.
External analysis to assess market opportunities and risks, trends, customer benefits, and understand competitive conditions.
SWOT analysis to combine the results of internal and external analyses and identify critical factors.

2. Establishment of the corporate vision and mission:

Definition of a clear and inspiring corporate vision describing the long-term goals and desired state of the company.
Establishment of a mission that explains the purpose of the company and its commitment to customers, employees, and other stakeholders.

3. Setting strategic objectives:

Derivation of specific, measurable, and time-bound objectives from the vision and mission.
Consideration of the interests of various stakeholders in formulating the objectives.

4. Development of strategic options:

Identification of various strategic options the company could pursue to achieve its goals.
Evaluation of options based on criteria such as feasibility, profitability, and strategic fit.

5. Selection of the best strategy:

Integration of insights from analysis and evaluation to choose the most suitable strategy.
Clear communication of the selected strategy to all relevant stakeholders.

6. Implementation of the strategy:

Development of concrete action plans enabling the implementation of the strategy.
Definition of clear responsibilities and allocation of resources.
Creation of mechanisms to monitor progress and identify the need for adjustments.

7. Monitoring and adjustment:

Establishment of a continuous monitoring process to ensure the strategy meets expectations.
Adjustment of the strategy as needed due to changes in the internal or external environment.

Successfully addressing these aspects requires a holistic approach, clear communication, active stakeholder engagement, and the ability to adapt to changing conditions.

Critical aspects and common obstacles:

Lack of clear vision and mission: Absence of a clear direction leads to uncertainty and can undermine employee motivation.
Inadequate stakeholder engagement: Failure to actively involve key stakeholders can result in resistance and lack of support.
Insufficient analysis: Superficial or flawed analyses can lead to incorrect conclusions and strategic decisions.
Poor communication: Lack of transparency and communication about the strategy lead to information gaps and uncertainties.
Resistance to change: Employees and leaders may resist changes if they are not adequately informed and involved.
Lack of resources: Inadequate financial, personnel, or technological resources can hinder the implementation of the strategy.
Non-flexible strategies: Rigid strategies that cannot adapt to changes are prone to failure in dynamic environments.
Unclear responsibilities: Lack of clarity about responsibilities can lead to confusion and inefficiency in implementation.

Role of a external strategy consultancy

Occasionally, there is a lack of necessary prerequisites for developing a solid corporate strategy. This often necessitates the involvement of external strategy consulting. Additionally, decision-makers, due to their professional backgrounds and roles within the organization, often have differing perspectives on the future and strategic options of the company. Consequently, they find it challenging to agree on a common strategy. This frequently prompts companies to involve external strategy consultants in the process of forming opinions and decision-making related to strategy development.