Corporate strategy involves three key issues: directional strategy, portfolio strategy, and parenting strategy. Directional strategy determines a firm's orientation toward growth, such as through expansion, stability, or retrenchment. Portfolio strategy uses tools like the BCG matrix to analyze a firm's various business units and determine the best allocation of resources. Parenting strategy considers how to leverage a parent company's resources and capabilities to build value across business units and generate synergies.

1. Strategy Formulation: Corporate Strategy

3. Corporate Directional Strategies

16. Corporate Strategy International Entry Options Exporting Licensing Franchising Joint Ventures Acquisitions Green-Field Development Production Sharing Turnkey Operations BOT Concept Management Contracts

21. BCG Matrix

23. General Electric’s Business Screen Source: Adapted from Strategic Management in GE , Corporate Planning and Development, General Electric Corporation. Used by permission of General Electric Company. A Winners Winners B C Question Marks D F Average Businesses E Winners Losers G Losers H Losers Profit Producers Strong Average Weak Low Medium High Business Strength/Competitive Position Industry Attractiveness

25. Portfolio Matrix for Plotting Products by Country Harvest/Divest Combine/License Invest/Grow Dominate/Divest Joint Venture Low High High Low Competitive Strengths Country Attractiveness Selective Strategies

32. Parenting-Fit Matrix Edge of Heartland Heartland Alien Territory Low High High Low FIT between parenting opportunities and parenting characteristics MISFIT between critical success factors and parenting characteristics Ballast Value Trap