chapter  6
36 Pages

SSM Corporate Level Strategy

ByJean Garner Stead, W. Edward Stead

Corporate strategy is the overall plan for a diversified organization. It focuses on managing the mix, scope, and emphasis of a firm's portfolio of strategic business units (SBUs), exploiting the synergies among its SBUs, and deploying capital to each SBU in order to achieve competitive advantages. Corporate strategic options designed to expand the firm's scope include growing within a single industry, horizontally integrating, vertically integrating, diversifying the product/market mix, and/or collaborating with partners in alliance strategies. The purpose of the Sustainable Strategic Management (SSM) corporate portfolio is to build capabilities that enhance the firm's ability to effectively manage its configuration of multimarket strategies so that triple-bottom-line value is created across the whole pyramid. An SSM corporate portfolio provides a framework that allows strategic managers to continually examine and, if necessary, change organizational values, assumptions, and strategies in light of eco- and socio-effectiveness.