Forming a corporate development strategy for the company
- G.V. Plekhanov Saint Petersburg Mining University
Abstract
The questions of formation of corporate strategy of companies on the basis of competitive analysis are considered. The estimation of strategy from position of correctness of formation of the mission and the purposes has great importance and does not lose the urgency and today, but strengthening of competition in the world market forces to shift accents towards the analysis of adequacy of the strategy to existing in branch competition. The successful corporate strategy is built on the basis of a number of preconditions and criteria. The formation of effective corporate strategy is determined by the following prerequisites: competition takes place at the level of subsidiaries; diversification inevitably leads to increased costs and constraints of enterprises; shareholders themselves can diversify their investments. The criteria of effective strategy include the criterion of attractiveness of the industry and the criterion of the cost of entry (into a new business). The key point in the formation of corporate strategy is the choice of business development concept: asset portfolio management, restructuring, exchange of experience and asset allocation. Inefficiency of the capital market determines the effectiveness of using the concept of portfolio management with a focus on the acquisition of undervalued companies of different types of businesses. The possibility of introducing its own know-how in the management of similar companies predetermines the effectiveness of the concept of restructuring.
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