Course Content
Internal Strategy Analysis
Internal Strategy Analysis – Resource-Based Approach, Value Chain Analysis
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Business Portfolio Analysis
Business Portfolio Analysis - BCG, GE Business Model, Ansoff’s Product Market Growth Matrix
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Unit VI: Strategic Management

✅ Core Sub-classifications of Corporate Strategy:

Classification Type Description Key Focus Area
1. Parenting Strategy How the parent company adds value to its business units Value addition, synergy, coordination
2. Portfolio Strategy How to manage the mix of businesses (SBUs) Business selection, resource allocation
3. Directional Strategy The overall direction of the firm: growth, stability, or retrenchment Path of development

 

🔷 1. Parenting Strategy

  • The corporate headquarters (parent) adds value to the individual businesses (children).

  • Focus: Synergy, support services, shared competencies.

📌 Example: Tata Sons guiding Tata Motors, TCS, and Tata Steel differently based on their needs.


🔷 2. Portfolio Strategy

  • Determines which businesses to enter/exit, and how to allocate resources.

  • Uses tools like:

    • BCG Matrix

    • GE-McKinsey Matrix

    • Ansoff’s Product Market Growth Matrix

📌 Example: A company selling off a “dog” SBU (low growth/low share) and investing in a “star” unit.


🔷 3. Directional Strategy

  • Guides long-term direction:
    🔹 Growth
    🔹 Stability
    🔹 Retrenchment

These become umbrella choices under which further strategies (like Integration or Diversification) are selected.