What Is a Company Strategy Statement?


A company's strategy statement is a document in which top leadership indicates the tools and methodologies the firm will use to reach economic success. In an ever-evolving economy in which today's tactics may be history tomorrow, a strategic blueprint indicates to department heads and segment chiefs how to implement operating objectives.

Internal Factors

A corporate strategy document provides an overview of internal elements necessary to outperform the competition. These elements draw on operational analysis, indicating to senior leadership how to use corporate resources to boost productivity. Examples include human resources procedures, knowledge capital, employee ethical values and strategic positioning in the competitive landscape. Knowledge capital is the combined skill set that results from the experience, knowledge, learning, information and abilities of a company's employees. When analyzing internal factors, top management studies the best way to instill greater strategic cohesion among department heads, segment leaders and subordinates. Put more simply, corporate executives ensure that all employees work in tandem to achieve the same strategic goals.

External Factors

External factors that affect a company's strategic moves are a subject of debate among corporate leadership. These factors include rivals' actions, the state of the economy, the regulatory landscape and financial markets. Under the direction of senior leaders, corporate strategists embark on a series of changes that ensure higher efficiency in the company's operating processes. Studying external elements helps top leadership work out adequate funding agreements with investors, especially when it comes to raising cash on global financial markets. For example, a company may include in its strategic statement the tools it will use to woo investors and financial analysts, touting its solid economic standing and credit rating.

Operational Goals

Operating goals relate to performance targets that business unit chiefs must meet in manufacturing and administrative functions. Top management works in tandem with department heads, instilling in employees the ethical guidelines necessary to achieve higher productivity. Senior executives often encourage department chiefs to provide comprehensive accounts of operating performance, fearing that a piecemeal disclosure may not be sufficient to correct inefficiencies. For example, a car manufacturer's top management may recommend that all production foremen publish detailed operating reports at the end of every quarter instead of ad hoc production statements. The detailed reports may contain valuable data about materials costs, factory overhead and fixed expenses.

Strategic Objectives

In a corporate strategy statement, top leadership includes short-term and long-term goals needed to steer the company to profitability. These objectives don't have an operational perspective, focusing rather on concerns such as the firm's long-term economic standing as well as its social citizenship and reputation in the marketplace. Social citizenship consists of initiatives, including charitable actions, that a company takes to improve society.

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