ABSTRACT
Just as every product or business unit must determine an appropriate competitive strategy to achieve an enhanced competitive position relative to rivals, so every organization must decide upon its attitude toward growth or alternative directions of strategic development. As with the other key business-level decisions (relating to the competitive stance and strategic methods), decisions related to strategic direction are usually taken at the SBU or product level, because conditions in one part of the organization may be different from those in another part. At the overall organizational (or ‘corporate’) level, however, managers must also be mindful of the overall balance between the directions taken by individual business units, because available resources will be finite. Necessary resources may not be available to invest in all aspects of the organization simultaneously, so resources may be taken from one area to invest in another area to allow it to develop and grow.
