PAPER

STRATEGY MANAGEMENT
“CORPORATE LEVEL STRATEGY”
Under Guidance:
Dr. Ir. Syahrial Shaddig, M. Eng., M.M.

Compiled By:
Akhmad Faisal Rifki (2210312310019)
Muhammad Albani Andika Putra (2210312310004)

INTERNATIONAL CLASS
BACHELOR’S DEGREE PROGRAM IN MANAGEMENT
FACULTY OF ECONOMICS AND BUSINESS
LAMBUNG MANGKURAT UNIVERSITY
BANJARMASIN
2024
 INTRODUCTION
a. Background
"Corporate Level Strategy" serves as a crucial preamble, providing a
comprehensive overview of the intricate landscape of strategic management within
organizations. At its core, corporate level strategy represents the apex of strategic
decision-making, encompassing the formulation and execution of overarching plans
and initiatives that shape the trajectory of the entire enterprise. Delving deeper,
"Corporate Level Strategy" section delves into the intricate nuances of corporate
level strategy, elucidating its multifaceted nature and the myriad factors that
influence strategic decision-making at the highest echelons of management. This
includes a detailed examination of how corporate leaders navigate complex
considerations such as resource allocation, portfolio management, and
organizational structure to drive sustainable growth and competitive advantage.
Moreover, "Corporate Level Strategy" situates the discussion within the broader
context of strategic management theory, introducing readers to seminal frameworks
and concepts that underpin contemporary strategic thinking. This includes an
exploration of generic strategy, which outlines different pathways for companies to
gain competitive advantage, whether through cost leadership, differentiation, or
focus strategies. Furthermore, "Corporate Level Strategy" section delves into the
concept of value discipline, which emphasizes the importance of aligning strategic
priorities with customer needs and preferences to create superior value propositions.
It also introduces the notion of key strategy, highlighting the critical role of strategic
decision-making in shaping the direction and priorities of the organization. Finally,
"Corporate Level Strategy" explores the intricacies of multi-business strategy,
which entails managing diverse portfolios of businesses to capitalize on synergies
and drive overall corporate performance. This includes an examination of how
companies navigate strategic trade-offs and make decisions about resource
allocation, diversification, and portfolio optimization.

b. Problem
The problem discussed in this paper relates to the background of Corporate
Level Strategy, as follows:
 1. A deeper exploration into corporate level strategy is warranted to provide a
comprehensive understanding of its intricacies.
2. An expanded elucidation of generic strategy is essential to unveil the diverse
pathways available for companies to attain competitive advantage.
3. A more extensive exploration of value discipline is warranted to illuminate the
strategic imperative of aligning organizational priorities with customer needs and
preferences.
4. A thorough examination of key strategy is imperative to elucidate its pivotal role
in shaping organizational direction and priorities.
5. An in-depth exploration of multi-business strategy is essential to unravel the
complexities of managing diverse portfolios of businesses within a corporate
entity.

c. Objectives
The overarching objectives of this study are multifaceted, aiming to offer a
comprehensive understanding of strategic management paradigms essential for
organizational success. These objectives unfold as follows:
1. To delve into the depths of corporate level strategy, unraveling its multifaceted
nature and exploring the strategic decision-making processes that shape the
overarching direction of organizations.
2. To undertake a comprehensive exploration of generic strategy, dissecting the
various approaches companies employ to gain competitive advantage in their
respective markets.
3. To illuminate the concept of value discipline, shedding light on the strategic
imperative of aligning organizational priorities with customer needs and
preferences.
4. To delve into the intricacies of key strategy, elucidating its pivotal role in
shaping organizational direction and priorities.
5. To undertake a comprehensive examination of multi-business strategy, exploring
the complexities of managing diverse portfolios of businesses within a corporate
entity.
 RESULT AND DISCUSSION
A. Corporate Level Strategy
Corporate level strategy represents the pinnacle of strategic thinking within an
organization, embodying a comprehensive blueprint meticulously crafted by the
uppermost tiers of management to guide the entire enterprise towards predefined
objectives and aspirations. It serves as the overarching framework that orchestrates
the collective efforts of all organizational components towards a common purpose,
shaping the trajectory of the company's growth and evolution.
At its essence, corporate level strategy involves a multifaceted approach to
decision-making that spans the breadth of the organization's operations. This
encompasses fundamental choices regarding the scope of the company's activities,
including the industries or markets it chooses to operate in, as well as the strategic
positioning of its various business units or divisions. Furthermore, it delves into the
intricate realm of resource allocation, determining how capital, talent, and other vital
assets are distributed across the organization to optimize performance and drive
value creation.
Within this strategic paradigm, the functions of corporate level strategy can be
distilled into three overarching imperatives. Firstly, the directive function entails
setting a clear strategic direction for the organization, articulating overarching goals
and objectives that serve as guiding beacons for all stakeholders. This involves
aligning the company's mission, vision, and values with actionable strategies that
translate lofty aspirations into tangible outcomes. Secondly, the integrative function
of corporate level strategy focuses on fostering cohesion and synergy across
disparate organizational elements. This entails breaking down silos and promoting
cross-functional collaboration to harness the collective intelligence and capabilities
of the entire organization. By fostering a culture of collaboration and knowledge
sharing, companies can unlock new opportunities for innovation and growth while
mitigating the risks of internal fragmentation and discord. Thirdly, the resource
allocation function of corporate level strategy revolves around judiciously deploying
the organization's finite resources to achieve strategic objectives. This involves
making tough trade-offs and prioritizing investments that offer the greatest potential
for value creation and competitive advantage. Whether it's allocating capital to high-
 growth initiatives, investing in talent development, or optimizing operational
processes, effective resource allocation is essential for sustaining long-term success
in a dynamic and uncertain business environment.
In pursuit of its strategic objectives, corporate level strategy is guided by a set of
core principles and objectives aimed at driving sustainable growth, enhancing
shareholder value, and ensuring the long-term viability of the organization. These
objectives may include expanding market share, increasing profitability, diversifying
revenue streams, or enhancing competitive positioning in the marketplace.
Moreover, corporate level strategy is not just about maximizing financial
performance; it's also about creating value for all stakeholders, including employees,
customers, suppliers, and the broader community. By adopting a holistic approach to
strategic decision-making that takes into account the interests of all stakeholders,
companies can build trust, foster loyalty, and create a sustainable competitive
advantage that transcends short-term financial metrics.

B. Generic Strategy
A generic strategy serves as the foundational concept that delineates the optimal
path for a company to assert its competitive edge within the marketplace.
Originating from the seminal framework pioneered by renowned strategist Michael
Porter, this strategic paradigm has become a lodestar for strategic planners
worldwide. It posits that a company's enduring success and resilience hinge upon its
ability to cultivate and leverage a distinct competitive advantage, grounded in one of
three overarching strategies.
Firstly, the pursuit of overall low-cost leadership emerges as a cornerstone of
competitive strategy, wherein companies strive to establish a commanding presence
in the market by offering products or services at prices significantly lower than
those of competitors. This entails a relentless focus on operational efficiency, cost
optimization, and economies of scale, enabling the company to undercut rivals and
capture market share through price competitiveness. Secondly, differentiation
emerges as a strategic imperative for companies seeking to carve out a niche in the
market by offering unique and compelling products or services that resonate with
diverse customer segments. By imbuing their offerings with distinctive features,
 attributes, or value propositions, these companies aim to cultivate strong brand
loyalty, command premium prices, and insulate themselves from the pressures of
price-based competition. Thirdly, a strategic emphasis on focus entails tailoring the
company's offerings and value proposition to cater to the specific needs,
preferences, or demands of select customer groups or industry segments. Whether
through cost leadership or differentiation, companies pursuing a focused strategy
aim to cultivate a deep understanding of their target market and deliver superior
value that resonates deeply with their chosen customer base, thereby forging
enduring relationships and fostering loyalty.
Each of these generic strategies represents a distinct pathway to competitive
advantage, predicated on a nuanced understanding of the market dynamics,
competitive landscape, and unique capabilities of the company. By aligning their
strategic endeavors with one of these overarching strategies, companies can chart a
course towards sustained growth, profitability, and market leadership, while
fortifying their resilience in the face of evolving market forces and competitive
threats.

C. Value Discipline
Renowned international management consultants Michael Treacy and Fred
Wiersema advocate for a paradigm shift in strategic thinking through their
groundbreaking concept known as the value discipline. Departing from traditional
approaches, they posit that the essence of strategic prowess lies in the relentless
pursuit of delivering unparalleled customer value through one of three distinct value
disciplines: operational excellence, customer proximity, or product excellence.
At the heart of their framework lies the conviction that strategic success hinges
on the mastery of a singular value discipline that aligns with the core competencies
and aspirations of the organization. Operational excellence emerges as a strategic
imperative for companies committed to delivering seamless, efficient, and cost-
effective solutions to customers. By streamlining processes, optimizing resources,
and leveraging cutting-edge technologies, these companies seek to provide
customers with products or services that are not only competitively priced but also
consistently reliable and convenient. In contrast, customer proximity emerges as a
 strategic differentiator for companies that prioritize forging deep, meaningful
relationships with their clientele. Rather than pursuing mass appeal, these companies
tailor their offerings to cater to the specific needs, preferences, and aspirations of
distinct market segments or niche audiences. Through personalized experiences,
tailored solutions, and attentive service, they seek to establish themselves as trusted
advisors and indispensable partners, earning unwavering loyalty and advocacy from
their customers. Lastly, product excellence represents a strategic imperative for
companies that aspire to lead through innovation and ingenuity. These trailblazers
are driven by a relentless commitment to pushing the boundaries of possibility,
constantly refining and reinventing their offerings to set new benchmarks of
excellence. By delivering products or services that not only meet but exceed
customer expectations, they strive to render competitors' offerings obsolete,
cementing their position as industry pioneers and trendsetters.
Each of these value disciplines represents a distinct pathway to competitive
advantage, predicated on a deep understanding of customer needs, market dynamics,
and organizational capabilities. By aligning their strategic endeavors with one of
these overarching disciplines, companies can unlock new avenues for growth,
differentiation, and long-term success in an ever-evolving business landscape.

D. Key Strategy
The cornerstone of organizational success, often interchangeably referred to as a
key strategy or business strategy, represents a meticulously crafted long-term
blueprint meticulously engineered to provide comprehensive guidance for pivotal
actions aimed at realizing enduring business objectives.
At its core, the key strategy serves as a foundational pillar upon which the entire
organizational edifice is erected, offering a coherent roadmap to navigate the
complexities of the competitive landscape and steer the company towards sustained
growth, profitability, and competitive advantage. It transcends mere tactical
maneuvers, encapsulating a holistic vision that articulates the fundamental direction,
priorities, and imperatives that underpin the organization's strategic trajectory over
time. The objectives underpinning the key strategy are multifaceted, each imbued
with profound implications for the organization's strategic posture and trajectory.
 Firstly, it endeavors to elucidate, explicate, and analyze a comprehensive array of
fifteen key strategies deemed essential for strategic managers in charting a course
through the dynamic and often turbulent waters of modern business. These strategies
span a diverse spectrum of strategic imperatives, encompassing growth-oriented
endeavors such as concentrated growth, market development, and product
development, as well as transformative initiatives including innovation, horizontal
and vertical integration, and diversification strategies ranging from concentric to
conglomerate diversification. Furthermore, the second objective of the key strategy
revolves around presenting a systematic framework for discerning and selecting the
optimal key strategy from among the myriad alternatives at the organization's
disposal. In an environment characterized by volatility, uncertainty, complexity, and
ambiguity, the ability to identify and prioritize strategic options with precision and
foresight assumes paramount importance. Through rigorous analysis, deliberation,
and evaluation, strategic decision-makers are tasked with navigating the strategic
landscape adeptly, identifying the most viable and value-generative pathways to
pursue the organization's overarching objectives while mitigating risks and
maximizing opportunities for sustainable growth and competitive advantage.

E. Multi-Business Strategy
A multi-business strategy epitomizes a sophisticated approach adopted by
companies to not only thrive but excel in diverse market segments simultaneously.
Departing from the conventional single-focus business model, this strategic
paradigm empowers companies to cultivate a diverse portfolio of businesses,
thereby diversifying risk, capturing market opportunities, and fortifying resilience in
the face of economic fluctuations and industry disruptions.
At its essence, the multi-business strategy entails viewing the company as a
dynamic portfolio of distinct yet interrelated businesses. This portfolio is
meticulously curated, evaluated, and optimized based on a comprehensive
assessment of each business unit's growth potential, market positioning, and ability
to generate cash flows. Corporate strategists wield their analytical acumen to
allocate resources judiciously, divest underperforming ventures, and strategically
acquire new businesses to enhance the overall balance and synergy across the
portfolio. The concept of synergy lies at the heart of multi-business strategy,
underpinning the strategic decision-making process with the notion of capability
sharing and leveraging core competencies across business units. By fostering
collaboration and knowledge exchange, companies can unlock higher efficiency,
enriched expertise, and sustainable competitive advantage that transcends individual
business silos. Moreover, core competencies generating competitive advantage can
be strategically leveraged across multiple businesses, amplifying the impact and
value proposition of these distinct ventures. Against the backdrop of globalization,
rapid technological advancements, and shifting consumer preferences, contemporary
multi-business strategic decision-making extends beyond portfolio optimization to
encompass the role and value-added contribution of the parent company itself. The
parent company approach delineates ten key areas of opportunity for managers to
explore avenues through which the parent organization can augment value creation
across individual businesses and the company as a whole.
Furthermore, the pathway approach responds to the exigencies of the 21st-
century business landscape characterized by turbulence and uncertainty, advocating
for agile and adaptive decision-making processes. This approach furnishes managers
with five types of "simple rules" that serve as guiding principles for shaping rapid
decisions in a multi-business enterprise, facilitating swift adjustments to processes,
markets, and products in response to evolving market dynamics and competitive
pressures.
 CONCLUSION
A. CONCLUSION
The exploration of Corporate Level Strategy unveils a rich tapestry of strategic
frameworks that underpin the very essence of organizational success. Through an in-
depth examination of concepts such as generic strategy, value discipline, key
strategy, and multi-business strategy, companies gain profound insights into the
intricacies of strategic decision-making and the pathways to sustainable competitive
advantage.
These strategic paradigms serve as compass points guiding organizations
through the dynamic and often tumultuous terrain of the business landscape.
Whether through the pursuit of cost leadership, differentiation, or market focus,
companies can strategically position themselves to outmaneuver competitors,
capture market share, and drive sustained profitability. Moreover, the effective
implementation of these strategies entails more than just strategic prowess; it
requires a deep understanding of the intricate interplay between organizational
objectives, market dynamics, and internal capabilities. By aligning strategic
initiatives with overarching business goals, companies can cultivate a cohesive
strategic vision that serves as a rallying point for all stakeholders and guides
decision-making at every level of the organization. Furthermore, the pursuit of
Corporate Level Strategy is not merely an academic exercise; it is a strategic
imperative for organizations striving to thrive in an increasingly competitive and
unpredictable environment. By carefully evaluating and fine-tuning their strategic
approach, companies can enhance their resilience, adaptability, and agility in the
face of evolving market forces and emerging challenges.

B. CRITICISM AND SUGGESTIONS

In critiquing the paper titled "Corporate Level Strategy," it's evident that the
author has meticulously covered a broad spectrum of essential strategic concepts,
including generic strategy, value discipline, key strategy, and multi-business
strategy. However, an opportunity for further scholarly development lies in the depth
of analysis applied to these concepts.
 To enhance the academic rigor of the paper, a more nuanced examination of the
empirical evidence supporting the effectiveness of these strategic frameworks in
various organizational contexts would be beneficial. By incorporating empirical
studies, case analyses, or industry-specific examples, the paper could provide
readers with concrete illustrations of how these strategies have been successfully
implemented or adapted in real-world scenarios. Furthermore, while the paper lays a
solid theoretical foundation for understanding corporate level strategy, it could
benefit from exploring practical applications and implications more extensively.
Integrating insights from practitioners, executives, or consultants who have firsthand
experience with implementing corporate level strategies would enrich the discussion
and offer practical insights for strategic decision-makers. In addition, the
interdisciplinary nature of corporate strategy warrants consideration. By drawing
from diverse fields such as economics, psychology, sociology, and organizational
behavior, the paper could offer a more holistic perspective on the complex dynamics
at play in strategic management. This interdisciplinary approach would enable a
deeper understanding of how external factors, organizational culture, leadership
styles, and market dynamics influence strategic decision-making processes.
Moreover, a critical examination of the limitations and potential drawbacks of
corporate level strategy frameworks would enrich the scholarly discourse.
Acknowledging the inherent complexities, uncertainties, and risks associated with
strategic management can provide a more balanced perspective and prompt future
research endeavors aimed at addressing these challenges.
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