The corporate strategy determines the business portfolio of an organisation and how it will compete in each business area.

29 The strategy components include the corporate mission, objectives, development strategy, resource allocation, and sources of synergy (Exhibit 2-1).

The strategy also spells out the organisation's role in society, its responsibilities to the stakeholders (employees, stockholders, etc.), ethical guidelines, and environmental priorities. Selecting a strategy for an organization requires deciding on the product-markets in which to compete (corporate-level strategies) and how to compete within those environments (business-level strategies).

30 Performance is the consequence of a combination of the strategy choices and how well the strategy is implemented.