BU481 Chapter 2: Chapter 2 Part II BU481.docx
Document Summary
Corporate strategy has traditionally looked at decisions about the management of businesses across industries. Business-level strategy deals with creating competitive advantage within an industry, while functional or product strategies are the means of executing the business strategy. The typical multibusiness corporation consists of a management hierarchy, which passes from a corporate entity to the business group and thence to individual business units that the corporation encompasses. The groups develop group strategies and set up guidelines for their individual units. 0in general, as you move down this hierarchy from the corporate level to the unit level, the emphasis passes from broad positions to increasingly specific initiatives. Corporate strategy is an explanation of the way in which the corporate entity intends to compete and to provide superior shareholder value relative to these alternatives. You can create a practical description by focusing on three things: business portfolio, corporate resources, and corporate management processes.
