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Corporate Strategy, Outsourcing and Core Business Focusing

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Every organization has its plan on how to execute different operations for achieving the set goals. Corporate strategy shows how to implement these activities and the expected results for the organization. Some of the activities have little impact on the overall performance of an organization and therefore the management takes an option of outsourcing them from the external markets. The company gives core businesses the first priority because they are the source of revenue for the company and better strategies taken towards their success.

Corporate Strategy, Outsourcing and Core Business Focusing

Corporate strategy

Corporate strategy shows the patterns of an organization which portray the missions, goals, policies, and guiding principles which outline how to achieve various plans and the type of business category to pursue. The strategy also gives the plan on the type of economic organization it intends to be in and the different plans for the members, employees, customers, and shareholders of the company. Corporate strategy applies to the whole organization in contrast with the business strategy which only concerns with the specific product which is on demand at a particular time. Corporate strategy enables superior performance of an organization through tough competition with others in the same field while focusing on the resources to achieve high returns at the end. Since it involves a process, the organization formulation and implementation are the aspects in analyzing the strategy. The senior executives who include the managers, the directors, and the chairpersons are responsible for the implementation of the organization’s corporate strategy (Foss, 2003).

How external turbulence encourages outsourcing

Many companies ...

... middle of paper ...

...ce efficiency (Mahadevan, 2010). As such, outsourcing is a good corporate strategy in the current business world.

References List

Dalal, J. (2011). Outsourcing in the Age of turbulence. International Association of Outsourcing

Professionals (IAOP): Global Business magazine. Retrieved from:

http://www.iaop.org/PrintContent.aspx?CTX=2&AID=3192&SID=34&SSID=175

Foss, J. N. Resources, Firms, and strategies: A Reader in the Resource-Based Perspective. Cape Town: oxford University Press. pp 54-55

Huber, B. (2011). The Great Procurement Outsourcing Debate: Important or Core Business

function. Technology Partners International, Inc. Retrieved from:

http://www.tpi.net/pdf/pointofview/POV-The-Great-Procurement-Outsourcing-

Debate.pdf

Mahedevan, B. (201). Operations Management: Theory and Practice. South Asia: Dorling Kindersley (India) PVT. Ltd. p 49
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