3.2. Corporate Strategy

The first strategy that should be addressed when considering the strategic direction of your company is a corporate strategy, which will set the overall strategic framework for your company. According to Keřkovsky and Vykypěl (2006), it is a good idea to address the following areas of business in relation to a corporate strategy:

• Area of Business 1 – your line of business (e.g. training for…., corporate consulting, selling a product, production, amusement park for…. etc.) It is necessary to establish a field of business not only in start-ups, but also existing companies, who would benefit from assessing whether their company’s activities are being conducted efficiently, whether certain areas of business should be dissolved or if they are stagnating already, whether or not to introduce new business activities etc.  The area(s) of business that the company decides on will be defined using strategic business units. See below.

• Area of Business 2 – What is the basis of your company’s or strategic business unit’s competitive advantage? Your fundamental, general, competitive logic and competitive strategies.

• Area of Business 3 – In which markets will your business operate? (regions, Czech markets, EU markets etc.).

A Corporate Strategy will outline the main strategic framework that your company will adhere to - that includes what sectors your company will conduct business in, which of the company’s existing business plans will be supported or dissolved, which markets your company will operate in, and how the company will compete in its field (Keřkovský and Vykypěl, 2006).