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Corporate Strategies: Directional, Portfolio and Parenting

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Describe the differences between the directional, portfolio, and parenting strategies.

In addition, describe when you would use these major types of strategies.

Please site all references.

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This solution discusses the differences between the corporate strategies given.

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Corporate Strategies

Corporate strategy deals with the choice of path of the firm on the whole. In other words, we can say that corporate strategy embraces determinations concerning to the flow of financial and other resources to and from a firm's product lines and business units (Chelte, 2004). Corporate strategy of an organization basically deals with three key issues which are dealt with following key strategies:

1. Directional Strategy: This corporate strategy deals with the firm's on the whole predilection toward growth, stability, or retrenchment. In growth strategy, strategies like mergers, acquisitions and strategic alliance can be included. If the organization needs to do a turnaround for overcoming its weaknesses, growth ...

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