Creating Corporate Advantage
Key Takeaways
- Corporate strategy is a carefully constructed system of interdependent parts.
- Corporate strategy is that which enhances value
- Creativity and intuition are critical for a successful corporate strategy
- Corporate strategy focuses on opportunities outside the company
How corporate strategy differ from business strategy
- The business strategy focuses only on the independent business unit without the involvement of the external factors that may affect the business which corporate strategy does.
- Corporate strategy focuses on a wider area of an organization, which is crucial in strategic decision-making across the organization. In contrast, business strategy is a step below the corporate strategy that focuses more on specific areas of the organization and is mostly used by managers of business units.
How a multi-unit approaches corporate strategy
- Multi-unit companies approach corporate strategy by creating value for their businesses by applying a set of management skills
- They encourage the sharing of corporate resources for the benefit of the organization.
- Having a proper control system
Article 2: Flaws in Strategic decision making: McKinsey Global Survey Results
Key Takeaways
Flaws in strategic decision-making can be avoided by assessing the realistic corporate capabilities
Companies own the ability to execute strategic decisions that should be accessed.
Decision-makers ought to have the necessary evidence and information that can help them avoid flaws in the strategic decision-making process
Failure to adhere to all the practices linked with successful decision making can lead to flaws
How Understanding the flaws in strategic decision-making impact actions of a manager
- Understanding the weaknesses in decision-making can make the managers rectify the challenges that caused the flaws.
- Managers are likely to encourage good decision-making practices that can ensure the success of future strategic decision-making
- Managers will exclude or minimize biases in the strategic decision making
How to prevent flaws in strategic decision-making
- Avoiding biases
- Providing a proper assessment of execution capabilities
- Assessing competitor’s reactions and ensuring proper alignment of individual incentives