Module 4
Current Strategies
corporatefinanceinstitute.com
,Session objectives
Understand how companies
Define corporate-, business-
and functional-level strategies adopt viable market positions on
the efficient frontier
Differentiate approaches
Learn about different
to product-market
positioning strategies
segmentation
Identify Porter’s Generic Recognize the appropriate
Strategies strategies for different stages
in an industry life-cycle
corporatefinanceinstitute.com
,Levels of strategy
Corporate-level (Portfolio)
Strategic decisions on business scope to
help a company sustain its competitive
advantage and profitability
Business-level
Market positioning strategies to gain
competitive advantage in one or
multiple industries
Functional-level
Activities within and between different
functions aimed at improving efficiency of
the overall business
corporatefinanceinstitute.com
, Corporate-level strategy
Corporate-level strategy or portfolio of businesses involves decisions strategic managers
should make about a company’s operation:
Decide in which businesses Select which value creation Determine how the company
and industries a company activities the company should enter, consolidate or
should compete should perform in those exit businesses or industries
businesses to maximize long-term
profitability
The goal of portfolio management is to enable a company to sustain its competitive advantage
and profitability in its present business and in any new businesses it chooses to enter.
corporatefinanceinstitute.com
Current Strategies
corporatefinanceinstitute.com
,Session objectives
Understand how companies
Define corporate-, business-
and functional-level strategies adopt viable market positions on
the efficient frontier
Differentiate approaches
Learn about different
to product-market
positioning strategies
segmentation
Identify Porter’s Generic Recognize the appropriate
Strategies strategies for different stages
in an industry life-cycle
corporatefinanceinstitute.com
,Levels of strategy
Corporate-level (Portfolio)
Strategic decisions on business scope to
help a company sustain its competitive
advantage and profitability
Business-level
Market positioning strategies to gain
competitive advantage in one or
multiple industries
Functional-level
Activities within and between different
functions aimed at improving efficiency of
the overall business
corporatefinanceinstitute.com
, Corporate-level strategy
Corporate-level strategy or portfolio of businesses involves decisions strategic managers
should make about a company’s operation:
Decide in which businesses Select which value creation Determine how the company
and industries a company activities the company should enter, consolidate or
should compete should perform in those exit businesses or industries
businesses to maximize long-term
profitability
The goal of portfolio management is to enable a company to sustain its competitive advantage
and profitability in its present business and in any new businesses it chooses to enter.
corporatefinanceinstitute.com
