3-Minute Introduction to Corporate Strategy

A Corporate Entity or Corporation is a legal independent entity that is separate from its shareholders.

A corporation is created (incorporated) by a group of shareholders who have ownership of the corporation.

Typically, the form of a corporate entity should be determined after consulting with legal and financial experts.

The main purpose of this entity is controlling all subsidiaries, and owning tangible and intangible assets such as capital, real estate, trademarks, and intellectual properties.

However, the goal of establishing a Corporate Strategy is to define the overall direction and scope of an organisation over a specific span, usually between 3 and 5 years.

Furthermore, it governs how resources should be utilised to fulfil the needs of different markets and the internal and external stakeholders.

The role of a corporate strategy is:

•Tooptimise the organisation’s architecture that is made up of various brands and business units, and to prepare it to operate in various markets.

•Todetermine how the corporation as a whole supports and enhances the integration and value of the owned brands.

•Todefinehowtheoverallbusiness is structured, and all subsidiaries are aligned with the organisation’s vision and business objectives, where those subsidiaries create higher value operating under one roof rather they would individually.

Corporations can do this by building strong internal capabilities that come from the integration of diverse business lines and sharing their resources and benefits, therefore developing a valuable corporate brand.

The corporate organisational structure is another important strategic factor that needs to be considered when developing a corporate strategy.

This includes the hierarchy of the different brands and business activities, and the structure of the financial, human, and other resources. These collectively, will increase the competitive advantage of the organisation and can drive and support its corporate strategic goals.

When co-creating, with concerned stakeholders, a corporate strategy, we analyse both quantitative and qualitative factors to achieve the following:

•Aligntheshareholders’objectives within a holistic corporate objective.

•Definethecorporatestrategicdirection that includes the vision, values, pillars, and competitive advantage.

•Decideontargetingaparticulargeographic market.

•Buildpersonasofthetargeted clients or customers.

•Analysethestrengths, weaknesses, threats, challenges, and risk factors.

•Finally,forecastpromising growth opportunities and scenarios.

More inforMationFor further information about this topic and how Y&Dcanassistyou,pleasecontact:

Khaled DahiCo-FounderY&DSustainableGrowthArchitects

khaled.dahi@ydgrowth.comlinkedin.com/in/kdahitwitter.com/kdahi