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Tips For an Effective Corporate Strategic Management

By: Henry Alzamora at Studio Nett Solutions

Submitted on Tue, Mar 3rd, 2009 4:23 am

A company should be seen as an institution rather than a mere profit generator matrix, unitary production units should be taken into account when undertaking a new strategy even more especially when talking about corporate strategies. By structuring a solid value system around the skeleton and main foundation of the company and by consolidating a deep rooted Culture Management, revenues and profits turn over can be logically expected in the mid and longer run.

There is something we should take into consideration, and it is the fact we have to see the firm as an institution not as a mere company or firm that just generate profits.

We also have to focus on 4 main things on that company, one is: the company per se, its surrounding and its competitiveness, we have to remember the strategic vision it has to be related to the corporate dimension, and this strategic vision has to be related to its entrepreneurship philosophy and its organizational culture, we have to differentiate these two concepts, the entrepreneurship philosophy it is mainly related to its institutional dimension and its organizational culture is mainly related to its human resource dimension, these two main sections are what makes the corporation per se, this is the corporate efficiency. In the other hand, after this here it comes the Strategic Management which is all what has to do with the economic and technical dimension effectiveness, after this it comes what is called the organizational system, can see in this, the processes this goes from the mid management sections of the firm to the staff in the lower part, and the corporate organization, here we can see the corporate dimension.

We have to reduce coordination costs between the firm or the company seen as a corporation now, the external corporate image dimension and the management or direction culture, reducing coordination costs means clear identification of values and precepts, guidelines, rules, etc, and corporate identity. Corporate Culture influence the Corporate identity, this influence the Corporate Brand, these three sections represent the self portrayal of the firm, the main thing here is the efficient corporate value systems used by the members of it. These three main sections influence the corporate image and corporate reputation which is already the perception of the firm either by the shareholders, stakeholders or any other external group.

So the secret of the corporation is the correct value systems in the external level, the value system is too close related to the Corporate Philosophy and the Corporate Culture both has to take into account behaviours and institutional criterions, seen this way therefore this builds the entrepreneurship philosophy which will create the corporate principles and this therefore will influence on the creation of the vision and mission same as realization of them among the members or staff, that will also increase internal and external shareholders same as stakeholders value.

A good director is a very important requisite for this be undertaken at a low coordination costs and in a short time of course, a good CEO will be in charge of becoming a promoter of this entrepreneurship philosophy and will have to spread it all over the organization and at the same to create entrepreneurship philosophy network system which will be in charge of multiplying this new approach among the members and of course the use of technology could be helpful for this, this create sustainability and can be a good prevention for crisis management for example or to face critical moments from the exterior of the firm.

About the Author

Henry Alzamora
Studio Nett Solutions
Henry Alzamora, MBA. Consultor, Business and Human Development Lecturer, Internet Marketer, Advertiser, Professor, writer and coacher. Studio Netv Solutions is a Latin american Management Consulting Firm advising leading company on issues of Strategy, Organization, Technology, Operations, Internet Marketing/Web Design/Development and Human Development.

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