What is meant by corporate level strategies? Identify and explain the basic features of corporate level strategies being represented by each of the…

Corporate level strategies are the strategies formulated at the top management level which define the overall direction and scope of the organization. These strategies deal with decisions relating to stability, expansion, retrenchment and combination of businesses. (i) Combination Strategy: The company is simultaneously expanding its profitable packaged food business into international markets while closing down loss-making units. Thus, it is adopting a Combination Strategy involving both expansion and retrenchment strategies. (ii) Retrenchment Strategy: The decision to sell out the commercial real estate division due to heavy losses represents Retrenchment Strategy . Under this strategy, the firm retrenches or drops loss making businesses through sell out or liquidation to improve overall performance. (iii) Stability Strategy: The decision to continue current operations of the home appliances division with steady sales and strong brand loyalty represents Stability Strategy . Under this strategy, the firm continues with the same business and maintains the existing level of effort without major investments. (iv) Expansion/Growth Strategy: The decision to make high investments in a rapidly growing online learning platform to gain greater market control represents Expansion/Growth Strategy . This strategy involves substantial investments and business growth to achieve greater market control and competitive advantage.