Title: Why Is Corporate Strategy Important? | Bizfluent
Headings: Why Is Corporate Strategy Important?
Why Is Corporate Strategy Important?
Allocates Company Resources
Establishes Expectations
Improves Competitive Position
Adds Shareholder Value

Content: Leaders allocate company resources according to the desirability of each business unit’s market opportunities, which determines its planning priorities. Establishes Expectations
A company conveys its corporate strategy to individual business units to drive performance and establishes the expectations of internal and external stakeholders, or those with an interest in the success of a company. Corporate objectives focus on key areas, such as market standing, productivity and profitability, for which measurable objectives are set, such as achieving a particular market share or financial return on investments. It’s through expectations that stakeholders align their activities with strategic goals and assume particular roles to ensure a corporate strategy is carried out successfully. Improves Competitive Position
The corporate strategy is concerned with a company’s growth and profit performance. Consequently, the strategy decides the businesses in which a company competes and how the business units structure and manage their activities to improve a company’s competitive position. Adds Shareholder Value
Relying on a company strategy, business units can increase investor value to something beyond the sum of its physical and intellectual assets. By making rational strategic choices about the business a company plans to pursue, the allocation of its resources, the use of organizational capabilities and business unit competitive advantages, the probability increases that business unit activities succeed in increasing a company’s value. Writer Bio
Billie Nordmeyer works as a consultant advising small businesses and Fortune 500 companies on performance improvement initiatives, as well as SAP software selection and implementation. During her career, she has published business and technology-based articles and texts.