Corporate Strategy - Starhub
Assignment Title: Corporate Strategy: StarHub Limited
1.0 Introduction
Corporate strategy refers to the across-the-board direction of the organization and how all the different businesses of the organization work together to achieve the main goals of the organization. So the question is, how can an organization determine their corporate strategy? And how can they use it effectively? This essay will be analyzing the use of corporate strategy for StarHub Limited by using the theoretical models of corporate strategy.
Corporate strategy can be broken down into four key questions. 1) What is the overall rationale of the corporate parent in the sense of how it positions itself and plays a part in enhancing the value created by its different business units for its shareholders? 2) What is the reasoning of the combination of business units in the corporate portfolio? 3) Is the type of diversification adopted reasonable? Given the corporate rationale and combination of business units. 4) Lastly, how do the corporate parent and the business units interact?
These four key questions are all connected.
2.0 What is a corporate parent?
Firstly, what is a corporate parent? Within an organization, the management above the different business units that do not have direct interaction with the buyers and competitors are commonly known as the corporate parent. The corporate parent takes on the role of trying to create and add value with the business units in the organization. Refer to figure 1.1 for an example of the corporate parent of an organization.
Fig 1.1 – Simple Multi-business company example
3.0 Corporate Rationale
There are four main corporate rationales that an organization can have: portfolio manager, restructurer, synergy manager and lastly, parental developer.
3.1 Portfolio Manager
In the portfolio manager rationale, the corporate parent acts as the financial markets and
1.0 Introduction
Corporate strategy refers to the across-the-board direction of the organization and how all the different businesses of the organization work together to achieve the main goals of the organization. So the question is, how can an organization determine their corporate strategy? And how can they use it effectively? This essay will be analyzing the use of corporate strategy for StarHub Limited by using the theoretical models of corporate strategy.
Corporate strategy can be broken down into four key questions. 1) What is the overall rationale of the corporate parent in the sense of how it positions itself and plays a part in enhancing the value created by its different business units for its shareholders? 2) What is the reasoning of the combination of business units in the corporate portfolio? 3) Is the type of diversification adopted reasonable? Given the corporate rationale and combination of business units. 4) Lastly, how do the corporate parent and the business units interact?
These four key questions are all connected.
2.0 What is a corporate parent?
Firstly, what is a corporate parent? Within an organization, the management above the different business units that do not have direct interaction with the buyers and competitors are commonly known as the corporate parent. The corporate parent takes on the role of trying to create and add value with the business units in the organization. Refer to figure 1.1 for an example of the corporate parent of an organization.
Fig 1.1 – Simple Multi-business company example
3.0 Corporate Rationale
There are four main corporate rationales that an organization can have: portfolio manager, restructurer, synergy manager and lastly, parental developer.
3.1 Portfolio Manager
In the portfolio manager rationale, the corporate parent acts as the financial markets and