- A corporate-level approach is a multi-tiered organizational plan that executives use to outline, specify, and accomplish explicit business objectives (Wright, 2021). The strategic plan at the corporate unit level is at the summit of the planning structure. A corporation’s finances, administration, human resources, as well as the locations where its goods are marketed are all affected by its corporate strategy. The goal of a corporate-level strategy is to increase profits while also ensuring that the company’s competitive advantage is maintained in the long run. Diversification is a strategy that involves developing new goods and services or entering new markets. Firms may choose to diversify their operations to enhance their strategic competitiveness with the aid of economies of scale (Hitt et al., 2020). Also, firms may diversify, reacting to the existing incentives from the government or other institutions to improve on some aspects. Lastly, corporations consider diversifying to improve managerial compensation or reduce administrative risks (Castaldi & Giarratana, 2018).
References:
Castaldi, C., & Giarratana, M. S. (2018). Diversification, branding, and performance of professional service firms. Journal of Service Research, 21(3), 353-364. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6041734/ (Links to an external site.)
Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2020). Strategic management: Concepts and cases: Competitiveness and globalization. 13th Edition. Cengage. https://www.amazon.com/Strategic-Management-Concepts-Competitiveness- (Links to an external site.)Globalization/dp/0357033833
Wright, T. (2021). Corporate strategy: The four key components. Cascade. https://www.cascade.app/blog/corporate-strategy
