We define corporate strategy as:
- The rationale for what businesses a corporation should be engaged in.
- The relationship between the corporation and the businesses.
- The process and analysis for determining the above.
A corporation may take a “holding company” approach to its businesses, with very little control over the business strategy of each business. A corporation may have strong influence over the business strategy of each business, looking to drive synergies across the corporation. A corporation may be on a spectrum of these extremes. Corporate Strategy must ultimately define and deliver a vision of how the corporation creates value for stockholders above and beyond what an individual business does. This may require investment, organizational structure, decisions about the salesforce, business scope, skills transfer, and other portfolio related decisions.