Creating Corporate Strategy

“Corporate strategy is the way a company creates value through the confguration and coordination o its multimark multimarket et activities” Presented By: Group 5 - Collins & Montgomery, 1!" • Anoop  Anoop Srivastava-MP14017 Srivastava-MP14017 • Awdhesh  Awdhesh Kumar Kaushal-MP14020 Kaushal-MP14020 • Ayan  Ayan Lahiri-MP14021 Lahiri-MP14021 •ai Kishan K ishan !ndiwar-MP14027 •Pra"has Kumar-MP140 Kumar-MP140#$ #$

#efning Corporate $trategy Corporate Strategy is the way a company creates value through the configuration and coordination of its multimarket activities %he de&inition has three important aspe'ts( • Value Creation - the )eneration o& superior &inan'ial per&orman'e *rents+ &rom multi-mar,et a'tivities that 'reate 'orporate advanta)es • Configuration - the multi-mar,et s'ope o& the 'orporation *produ'tmar,et diversi&i'ation. )eo)raphi' &o'us. and verti'al "oundaries+ • Coordination - the mana)ement o& a'tivities and "usinesses that lie within the 'orporate hierar'hy Sour'e( /ollis and Mont)omery. /orporate Strate)y. 17

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%eed or Corporate $trategy • %he nature o& these lar)e 'orporations has under)one enormous 'han)e in the last &orty years. a&&e'tin) "oth their s'ope and their stru'ture • %he mer)er and a'uisition "ooms o& the si3ties and ei)hties e3tended the s'ope o& e3istin) multi"usiness 'orporations • More re'ently. 'apital mar,et pressures &or'ed every 'orporation to reassess its port&olio o& "usinesses. level o& overhead. and the way it 'oordinates and 'ontrols its multi"usiness a'tivities #

%eed or Corporate $trategy • Most industrial a'tivity in developed 'ountries is 'arried out "y lar)e 'orporations whi'h 'ompete in more than one mar,et • !n the nited States. $05 o& assets are 'ontrolled "y multi"usiness 'ompanies *6illalon)a. 200#+ !n urope. the per'enta)e is a"out the same *Pedersen and %homsen. 17+ • 8n avera)e these &irms en)a)ed in over 10 di&&erent lines o& "usiness

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%eed or Corporate $trategy • !n response. normative pres'riptions &or 'orporate strate)y have "een varied as the 'hallen)es multi"usiness 'orporations have &a'ed • 9rom an emphasis on &inan'ial per&orman'es and PS )rowth in the si3ties. throu)h mana)in) the 'orporation as a :port&olio; o& S