Which kind of corporate strategy deals with the manner in which the firm coordinates activities...


Which kind of corporate strategy deals with the manner in which the firm coordinates activities and builds corporate synergies through resource sharing and development?

A) portfolio strategy

B) directional strategy C) parenting strategy

D) cooperative strategy

E) functional strategy

Corporate strategy:

In a business, corporate strategies help to accomplish the broader goals. There are four types of corporate strategies as per strategic management is concerned. These include growth, retrenchment, stability, and re-invention strategies.

Answer and Explanation:

The correct option is C) Parenting strategy

In a parenting strategy, the companies nurture their relations with each other by sharing their resources. These resources can be financial, raw materials, equipment, and other resources and help the companies to reduce the chances of resource scarcity. In this type of corporate strategy, the companies strive to build fruitful relations with each other.

Reasons for incorrect options:

Option A) is incorrect because portfolio strategy is not associated with building synergies.

Option B) is incorrect because directional strategy is not linked with resource sharing.

Option C) is incorrect because cooperative strategy aims to earn profits.

Option D) is incorrect because a functional strategy also is not associated with resource sharing.

Learn more about this topic:

Corporate-Level Strategy: Focus on a Single Industry


Chapter 3 / Lesson 9

Explore corporate-level strategy. Learn the definition of a corporate-level strategy and understand its characteristics. See corporate-level strategy examples.

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