Strategy Reading: Corporate Strategy

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The Corporate Strategy Reading uses the lens of value creation and value capture in order to examine corporate strategy. It highlights why firms, especially those competing in multiple businesses, need a corporate strategy in order to guide their decisions about the scope of businesses they should operate in, as well as whether and how to structure the relationships between these businesses. In doing so, the Reading emphasizes how different modes of coordinating economic transactions affect the likelihood of positive and negative synergies. The Reading also considers how a firm should organize in order to implement its corporate strategy successfully. It concludes with two short supplemental readings that consider the interaction between corporate strategy and organizational scope.
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