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Table Of Contents
  • Corporate Strategy
  • Operational Strategy
  • Models of Strategy
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Corporate Strategy

A corporate strategy is an approach used by firms to make informed decisions and create the most value. It involves checking across all the portfolios of the company or business to determine how they can be fitted together and impact each other. In other words, a corporate strategy analyzes the structure of the parent company. It is a type of strategy that is used to optimize the leadership, processes, and capital for the business. A corporate strategy is often initiated or founded on a business strategy.

Operational Strategy

Operational strategies are formulated to support and drive the operations of the company. It is the ultimate business strategy and critical to helping the company cope in an ever-changing business environment. An effective operational strategy ensures that the management optimally uses the resources of the company. Operational strategies are determined by corporate strategy.

Models of Strategy

There are three widely used models of strategy. We have discussed them below:

Linear Strategy

A linear strategy model is based on planning. The objectives and the activities that will be carried out to achieve them are determined by strategic management. In linear strategy, the management team comes up with a plan of how they will gain a competitive edge and attain the set goals.

Adaptive Strategy

Adaptive strategy correlates with the principle of incrementalism. It focuses on the development feasible match between the external environment's risks and opportunities, and the ability of the organization to use its resources to exploit the opportunities. An adaptive strategy forces an organization to proactively or reactively change to conform to the preferences of the organization.

Interpretive Strategy

Interpretive strategy relates a business and its environment. However, it is the management team that interprets and maps out the changes in the organization and the appropriate responses that should be undertaken. The managers seek to motivate stakeholders by using intended tactics that favor the organization.

Frequently Asked Questions
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