What is a corporate strategy Why is it important for a small

What is a corporate strategy?

Why is it important for a small business to identify a corporate strategy?

What are possible consequences that a small business may experience if it does not have a defined corporate strategy?

Please provide the reference that is used.

Solution

Corporate Strategy : The corporate actions of a firm that are executed with an aim to achieve the objectives of the company thereby achieving a competitive advantage is known as corporate strategy.

It is important for a small business to identify a corporate strategy since it will bring into proper policies and procedures. Corporate strategies will also help the small businesses yo identify its goal and vision. It will aid the organization to devise objectives based on the goal of the organization. Hence it is important for a small business to identify a corporate strategy. It will also bring in clarity to the operations of the business.

If a small business does not have a defined corporate strategy then it will have the following consequences: