The goal of corporate strategy is to articulate a vision of a great company that is also a great stock—and to define the specific moves needed to bring that vision to life. Rooted in a clear understanding of competitive advantage, corporate strategy lays out a multiyear roadmap for how best to leverage advantage to develop business strategies for growth and drive strong, sustained value creation. A winning corporate strategy will identify the optimal business portfolio, prioritize the right growth platforms, and set a financial strategy to transform vision into value.
Corporate Strategy
How We Help Corporate Strategy Clients
Our corporate strategy work with clients focuses on answering questions in four key areas:
Mission, vision, and ambition.
Where is our industry headed? And where do we want to be five or ten years from now?
Corporate portfolio strategy.
What is the overall logic of our business layout and the responsibilities it includes?
Corporate growth strategy.
What are business strategies for growth? Do we need to pursue new growth vectors?
Corporate growth strategy.
What are business strategies for growth? Do we need to pursue new growth vectors?
Spotlight on Corporate Portfolio Strategy
Portfolio strategy—helping clients determine how to invest capital across businesses, products, and initiatives to maximize returns—has been at the core of Our DNA since our founding. And any good value creation strategy depends on a clear portfolio strategy and active management of the business portfolio that focuses on three imperatives:
Define the value creation roles of the businesses in the portfolio. Which businesses will be your growth engines? Which will mainly supply cash for other businesses to invest? Which will you need to turn around or consider selling?
Allocate capital differentially across the corporate portfolio. Capital allocation should depend on each unit’s current performance, future potential, and role in the portfolio. Take the perspective of a long-term investor: will this business be worth more in the future—and what can we do to maximize our return on investment?
Shape and reshape the business portfolio, and the business strategies for growth, over time. M&A and divestitures are critical parts of active portfolio management. How can we accelerate opportunity through acquisitions? Which businesses no longer fit your portfolio logic and investor story and would be better owned by others?
