1. What is Corporate strategies?

- Corporate strategy is a unique plan or framework that is long-term in nature, designed with an objective to
gain a competitive advantage over other market participants while delivering both on customer/client and
stakeholder promises (i.e. shareholder value).

2. What are the four components of Corporate strategies? With definition.

- (1) Visioning - involves setting the high-level direction of the organization - namely the vision, mission, and
potentially corporate values.

- (2) Objective Setting - involves developing the visioning aspects created and turning them into a series of
high-level (sometimes still rather abstract) objectives for the company, typically spanning 3-5 years in length.

- (3) Allocation of Resources - refers to decisions that concern the most efficient allocation of human and
capital resources in the context of stated goals and aims.

- (4) Strategic Trade-Offs - are at the core of corporate strategic planning. It's not always possible to take
advantage of all feasible opportunities. In addition, business decisions almost always entail a degree of risk.
Corporate-level decisions need to take these factors into account in arriving at the optimal strategic mix.

3. What is integrative growth strategy?

- An integrative growth strategy is a growth strategy that emphasizes blending businesses together through
acquisitions and mergers. involve investing the resources of the organization in another company or
business to achieve growth goals. Integrative growth strategies are essentially acquisition strategies

4. What are the four types of strategies? With definition.

- (1) Stability Strategy - Strategy to maintain the current market share and position by continuing to serve in
the same industry with the same product line and services. It occurs when a company performs fairly and
reasonably well in its sector and chooses to gain stability. The main objective of organizations through such
strategies is to gain perpetual growth and improved performance in the long run. It is common because it is
less risky and inexpensive as no new or out-of-box planning needs to be executed. It gives importance to
sustainable and modest growth.

- (2) Expansion Strategy - The strategies focus on entering new markets, innovating and introducing new
products and services, etc. Methods include expansion through concentration, diversification, integration,
cooperation, and internationalization. It aims to expand market share, obtain increased profit, and achieve
faster growth. It helps companies dominate the market, withstand competition, gain competitive
advantages, and in certain market conditions, expansion strategies help companies survive. It benefits
society through innovation. It is highly rewarding and adds value to the company.

- (3) Retrenchment Strategy - It is the opposite of an expansion strategy. It helps reduce the loss made by
restructuring the strategies, cutting off loss-making divisions or businesses, etc. The main types of
retrenchment strategies are turnaround, divestment, and liquidation. It is formulated when companies
observe that they must revamp their business model, sell certain assets to generate cash flow, etc.
Enterprises may stop a product line due to low demand and high-cost manufacturing. It is the least utilized
strategy as it is only regulated as protective measures in a survival mode when the company faces a strong
market crisis and seeks to regain profitability.
- (4) Combination Strategy - Another important type of corporate strategy is the combination strategy. It
occurs when a company combines other strategies instead of focusing on a single strategy. It is common
with entities like MNCs and other large organizations. When the different business units or divisions perform
different activities, the parent entity will utilize different strategies for the units.