Accounting technicians scheme west africa
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- F.6.5 Distinction between Corporate and Divisional Strategy F.6.5a Corporate strategy
| F.6.4 Operating Strategy These are approaches for managing key operating units (plants, distribution centres, geographic units, etc) and specific operating units with strategic significance (for example advertising campaigns, the management of specific brands, online sales, etc. For example, approaches fashioned by a plant manager to run a specific plant (an operating strategy) should be in tandem with the overall production strategy of the organization. Lead responsibility for operating strategies is usually delegated to frontline managers, subject to review and approval of a higher ranking officer. 183 F.6.5 Distinction between Corporate and Divisional Strategy F.6.5a Corporate strategy Corporate strategy is essentially developed to offer directions to the business for accomplishing their long-term objectives. A corporate strategy is developed in accordance with the objectives and scope of the activities of the organization. It also considers the nature of business by taking into account its operating environment, its position in the market and the degree of competition it encounters. Corporate strategy examines the company’s current market position and seeks to optimize operations, profitability and growth by weighing the risks and rewards of diversifying into new markets and establishing additional revenue streams against the projected benefits and limitations of remaining focused on a single market. Corporate strategy seeks to answer the question, What businesses or industries should we be working in It concentrates on developing a mix of business units that will enable it to achieve success as a whole. The basis of corporate strategy is the organization’s vision. The mission statement of an organization explicitly mentions its corporate strategy. It plays a very important part in the strategic decision-making across the organization. Corporate-level strategy is typically developed by the top-level managers in organizations. Download 3.37 Mb. Share with your friends:
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