Final answer:
Executives in corporate-level strategy make decisions on mission statements, manage portfolios for value creation, and consider the competitive landscape. Shareholders elect a board that chooses company managers, while banks serve as financial intermediaries. Companies can expand via mergers or by becoming multinationals, weighing control and ownership issues.
Step-by-step explanation:
In a corporate-level strategy, executives are tasked with making crucial decisions that shape the overall direction of the company. These decisions often involve consideration of the company's mission statement and its strategic position within various markets. Furthermore, executives must determine the balance between corporate size and competition in the marketplace, which involves analysis of the number of competitors and the potential for synergy or value creation through the management of the company's portfolio.
Shareholders play a vital role in the governance of a company by electing the board of directors, who, in turn, select the company managers. As financial intermediaries, banks help to mobilize funds throughout the economy. For a small firm needing capital for expansion, the choice between borrowing and issuing stock involves examining the trade-offs between retaining control and sharing ownership with new shareholders.
Merger Strategies
Firms may choose to grow and expand through various types of mergers, such as horizontal, vertical, and conglomerate mergers, each with specific strategic advantages. A multinational conglomerate is a complex example of a business that operates across multiple countries, reaping both positive and negative aspects of global operations.