chapter  6
26 Pages

Setting Corporate Direction

Previous chapters have established the fact that organizations exist for a purpose

(stated in their mission and vision) and are built on a set of core values. In these

previous chapters, the idea of how core competencies are used to establish a corporate

strategy and establish a sustainable competitive position was discussed. The essence

of corporate strategy is determining the overall direction that will enable the purpose

of the organization to be fulfilled. Corporate strategy achieves strategic objectives

through the products or services the business offers. One aspect of corporate strategy

that should reflect the purpose and core values of an organization is whether the

organization should remain a single business or operate in multiple businesses.