In this Module, bacha log), we are going to see Corporate Strategy and what it ensures,
right. What does Corporate Strategy ensures?
In the first place it ensures the growth of the firm, correct, and as well as correct alignment
of the firm with its environment. Whether they are in aligned or not, in case they are not
then they have rectify their strategy, come up with new strategy, so that they are always in
align with their environment. Right. So it should be always aligned with its environment. It
serves as the design for filling the strategy planning gap. So for that reason we need to have
a Corporate Strategy. It also helps to build competitive advantage. So always we need to be
one step ahead than our competitors. For that reason we need to have, yeah, Corporate
Strategy. It also ensures grabbing opportunities which are available in the market or in the
environment and countering the threats in it. Right, you have learnt all swat analysis, so
after doing, after going into the business environment, we need to know and we come to
know what are the opportunities available and threats that the company faces. So for
grabbing those opportunities we need Corporate Strategy and counter those threats. Right
kids, remember.
Further down, Strategy is partly Proactive and Partly Reactive. Now suppose in case Coke
reduces Rs.1/-, right, for the small chota Coke. Then immediately Pepsi will also copy with
the same. So we call it as Strategy is partly Proactive and partly Reactive. Correct. Now
Proactive actions on the part of the managers to improve the company’s market and
financial position. So why this company called Pepsi will reduce the price, this is the reason
for that. Okay. Companies market and financial position will be effected if they don’t
retaliate immediately by the reduction of Rs.1/-. Reactions to.