Corporate Parent Strategy Theory
In this question, I will talk about corporate strategy and Parent Strategy theory. I will define the meaning of both strategies and its role and responsibilities. Then, I will discuss and analyze the nine areas in which the corporate parent can add value or not destroy value.
Talking about corporate strategy lead us to talk first about the strategy. Strategy defined as "the art of devising or employing plans or stratagems toward a goal" (Merriam-Webster online, 2007). It is a plan of actions to achieve long-term goals. At any organization, there are three main levels of strategy; Corporate Strategy, Business Strategy and Functional Strategy as in figure1. Figure2 shows an example of my organization with three strategies levels. Figure 1:
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1995). It concerns two main issues; what business should the company be in and how the corporate office should manage the array of business units (Porter 1987). Therefore, we can say the corporate strategy is the overall direction of the company.
According to Grant (2002), the role of corporate strategy is to "define the scope of the firm in terms of the industries and markets in which it competes". Therefore, it identifies barriers to achieve firm 's goals and develops an approach to overcome the obstacles especially in nowadays dynamic environments and industries. I strongly agree that the main role of corporates strategy is how to create or capture value in product market like apple when it innovate in its product-software in a way that added value to it and its
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Goold et al. criticize the core competencies theory focus on technical core competencies and failure to deliver practical guidelines for formulation of corporate company strategy and inability to explain the existence of successful diversified multi-business companies (Kruehler et al. 2012). In same study defined corporate parent strategy as "the consistent and effective combination of value creating activities, resulting either from direct corporate parent activities or from the composition of the portfolio (interactions between businesses without direct intervention of the corporate parent) (Kruehler et al. 2012). I studied the theoretical contribution to parenting theory as table1 (Mehmood & Abdullah 2013,
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