The corporate level of management consists of the Chief Executive Officer (CEO), other senior executives, the Board of Directors and the corporate staff. Corporate strategies are formulated by the top managers.
They are responsible for strategic decision-making and broadly have the following roles:
• Development of strategies for the whole organization
• Ensure alignment and right fit with environment
• Mission and goals defining of the organization
• Allocating resources among the different businesses
• Nurturing and providing leadership for the organization
• Determining what businesses it should be in
• Strategic formulation and strategic implementation
Corporate strategies focus on stability, expansion, retrenchment and combination. Corporate-level managers, and particularly the CEO, may be viewed as the guardian of shareholders’ welfare. It is their responsibility to ensure that the corporate and business strategies that the company pursues are consistent with maximizing shareholders’ wealth. If they are not, then ultimately the CEO is likely to be accounted for by the shareholders
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