Corporate Strategy

Corporate strategy is the art of ensuring that the value of the enterprise as a whole is greater than the sum of its parts.

Covelent helps companies unlock their strategic "sweet spot" and create value for long-term success by focusing on key areas such as capital allocation, corporate vision, growth strategy, parenting strategy, portfolio strategy, and investor strategy, all crucial elements of a comprehensive corporate strategy.

Addressing Key Corporate Strategy Business Issues

At Covelent our corporate strategy services are particularly beneficial for addressing several key business issues:

Lack of Strategic Clarity: We help clients who are struggling to define a clear and compelling corporate vision and strategy. By working closely with leadership teams, we develop a shared understanding of the company's strategic direction and how it will create value for stakeholders, a fundamental goal of corporate strategy.

Underperforming Business Units: For companies with business units that are not meeting performance expectations, we provide guidance on how to turn around or divest these businesses, ensuring alignment with the overall corporate strategy. This may involve reallocating resources, changing management, or exploring strategic alternatives such as joint ventures or divestitures.

Inefficient Capital Allocation: We assist clients who are not effectively allocating capital across their business portfolio, a critical aspect of corporate strategy. By conducting a thorough review of the current investment portfolio and developing strategic capital budgeting guidelines, we help clients optimise their resource allocation for maximum impact, in line with their corporate strategy.

Lack of Growth Opportunities: For companies that are struggling to identify new growth opportunities, we provide guidance on how to expand into new markets, launch new products or services, or pursue strategic partnerships and acquisitions, all within the framework of a cohesive corporate strategy. We assess the company's core capabilities and market position to develop tailored growth strategies that align with the overall corporate strategy.

Misaligned Organisational Structure: We help clients who have an organisational structure that is not aligned with their corporate strategy. This may involve redefining the role of the corporate center, restructuring business units, or developing new governance models to improve overall performance and support the successful execution of the corporate strategy.

Investor Concerns: For companies facing investor concerns or activism, we provide guidance on how to communicate a compelling investor story and engage effectively with the investment community, ensuring that the corporate strategy is well-understood and supported by investors. We also assist clients in attracting and retaining the right mix of investors to support their long-term growth objectives and corporate strategy.

Our corporate strategy services are designed to help clients address these and other critical business issues. By working closely with our clients to develop customised corporate strategy solutions, we help them overcome challenges and unlock their full potential for sustainable value creation.

Our Corporate Strategy Consulting Services

Where we play

Capital Allocation Strategy

Capital allocation is the foundation of our corporate strategy services. We advise CEOs and executive teams on optimising the deployment of scarce capital, focusing talent and management attention on the most impactful areas, and guiding strategic decisions on acquisitions and divestments. Our corporate strategy approach addresses the critical questions of efficiency and strategic alignment in capital allocation.

Corporate Vision

We help clients articulate a clear and compelling corporate vision that sets the direction for the organisation, a key aspect of effective corporate strategy. This involves defining the company's mission, values, and long-term ambitions. We work with leadership teams to develop a shared understanding of where the company is headed and how it will create value for stakeholders, aligning with the overall corporate strategy.

Growth Strategy

Our growth strategy services, an integral part of corporate strategy, help clients identify and pursue new opportunities for expansion and value creation. We assess the company's current market position, competitive landscape, and core capabilities to develop tailored business strategies for growth that align with the broader corporate strategy. This may involve entering new markets, launching new products or services, or pursuing strategic partnerships and acquisitions.

Parenting Strategy

We assist clients in defining the optimal role of the corporate centre in guiding and supporting the business units, a crucial consideration in corporate strategy. This involves clarifying the value-added activities of the corporate centre, such as setting strategic direction, allocating resources, and providing shared services. Our corporate strategy approach helps clients strike the right balance between centralised control and business unit autonomy to maximise overall performance.

Portfolio Strategy

Our portfolio strategy services, a key component of corporate strategy, help clients determine how to invest capital across businesses, products, and initiatives to maximise returns. We work with clients to define the value creation roles of each business in the portfolio, allocate capital differentially based on performance and potential, and actively manage the portfolio through acquisitions and divestitures, all in line with the overarching corporate strategy.

Investor Strategy

We help clients develop and communicate a compelling investor story that articulates the company's value creation potential, an important aspect of corporate strategy. This involves aligning the company's financial strategy with its overall corporate strategy, setting appropriate financial targets and metrics, and engaging effectively with the investment community. Our corporate strategy services also assist clients in attracting and retaining the right mix of investors to support their long-term growth objectives.

Our expertise

Our team of experienced strategists, industry experts, and financial analysts brings deep expertise and a proven track record of helping businesses unlock their full potential through effective corporate strategy. We are committed to working closely with our clients to develop bespoke corporate strategy solutions that drive sustainable value creation.

Industry Insights

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