Corporate Strategy 

1. Structure complex strategic problems and propose logical solutions.
2. Apply the full range of techniques and concepts available to the contemporary corporate planner.
3. Analyse, assess, and choose between strategic alternatives.
4. Understand the financial, human, and organisational issues which affect the successful development and implementation of corporate strategies and plans.
5. Incorporate contemporary issues and developments affecting organisations into corporate plans.
6. Assess the impact and implications of international and global issues on the corporate strategic planning process.

Programme Content and Learning Objectives:

The nature and importance of corporate strategic planning in today’s organisation. The various definitions and models of corporate strategy and planning and the characteristics of corporate strategic decisions compared to other levels of strategic planning and decision making in the organisation. The various elements involved in the development of corporate strategy and some of the key concepts and vocabulary used by today’s corporate strategists.

The application of corporate strategy in various types of organisational settings and how corporate strategies develop in different organisations. Strategy development for: small businesses, manufacturing and service organisations, public sector organisations, voluntary and not-for-profit organisations, professional service organisations, innovatory organisations and multinational corporations. Different patterns of strategy development, including intended versus realised strategies, pre-planned versus emergent strategies and imposed strategy development. Factors affecting strategy development in the organisation and challenges for strategy development including uncertainty and the notion of strategic drift.

Types of analyses required for corporate planning decisions. Environmental analysis including, for example, PEST and the identification of key environmental drivers. The steps and stages in environmental analysis, together with techniques for auditing and forecasting the environment. In addition, the competitor environmental analysis is included, encompassing strategic group analysis, the analysis of competitive market structure, and competitor based strategies including strategies for market leaders, market followers and market challengers.

Finally, in this part of the syllabus, internal analysis is considered, including the assessment of strengths and weaknesses, value chain analysis, comparative analysis and benchmarking, financial analyses and identifying core competences and critical success factors.

The range of strategic options and decisions which the corporate planner must assess. First, the identification and selection of alternative mission statements and key objectives for the organisation. The nature of mission statements and the importance of business definition together with the range of possible objectives and goals which the corporate planner may select between. Factors affecting the selection of objectives including the role and influence of stakeholders and shareholders. Options for strategic direction from consolidation to exit strategies, including Ansoff’s Product Market Matrix. Methods of strategic development including internal development, mergers and acquisitions, and joint developments and strategic alliances are introduced. Finally this part of the syllabus will also consider the bases of strategies, competitive advantage ranging from cost and price based strategies, added value strategies, differentiation strategies, through to focus and hybrid strategies.

The range of concepts and techniques in evaluating and selecting between strategic options. The criteria of suitability, acceptability and feasibility in strategy evaluation and selection. Included in the techniques of strategy evaluation and selection are: decision tree analysis, strategy screening, risk analysis and techniques of financial analysis. Key concepts of strategy evaluation and selection include the concepts of strategic fit and synergy. Finally, the different processes for selecting strategies are considered, encompassing how strategic choice and selection of strategies can be undertaken within organisations.

Factors affecting the implementation and control of corporate strategies. The determination of policies, procedures and budgets, together with the design of different organisational structures which may be used to implement strategies including those for multi-national/global organisations. Resource configuration and resource allocation and control, including the use of information as a control.

The range of contemporary techniques and tools available to the corporate strategist together with their limitations. The variety of tools which have specifically been developed to aid the corporate strategist in the identification, selection and evaluation of strategies. The following are considered to be examples of important tools and techniques for today’s corporate strategist: BCG’s Growth Share matrix, Directional Policy Matrices including the General Electric (GE) and Shell Matrices, Porter’s Industry/Market Evolution Matrix, A D Little’s Competitive Position/lndustry Maturity Matrix, the Parenting Matrix, PIMS Technique, the Experience Curve Concept, and GAP Analysis.

In this part of the syllabus, a number of contemporary and possible future developments important to the corporate strategist are considered. In particular the importance of Information Technology and Information Systems for the Corporate Strategist, international and global aspects of corporate strategic planning are also introduced. Finally, issues in the management of strategic change are considered together with the increasing emphasis and importance given to the social/ethical, and environmental considerations for today’s corporate planner.

By written examination. The pass mark is 50%. Time allowed 3 hours.

Eight questions of which four must be answered. All questions carry 25 marks