Corporate Strategy vs. Business Strategy: What’s the Difference?

You are likely already familiar with the terms “corporate strategy” and “business strategy,” and while the two are often used in relation to one another, there are key differences between them.

This blog will address both types of strategies, including their definitions, examples, and tips for developing effective systems that align with organizational objectives. It will also answer a few frequently asked questions that are top-of-mind for leaders and executives.

Corporate Strategy vs. Business Strategy: Definitions

There is overlap between “corporate strategy” and “business strategy,” but understanding the distinctions is important to honing both. 

“At the highest level, corporate strategy is the foundation for how a company aligns the markets where it competes, the resources it deploys to compete in those markets, and the organizational levers to best serve those markets with its resources. Business unit strategy focuses on how best to increase share in those markets with the positioning of products and services across customer segments,” says Eric Chung, instructor of Corporate Strategy for Growth at Harvard DCE’s Professional & Executive Development.

The Strategy Institute offers the following definitions:

Corporate strategy is an overarching, long-term plan. It guides an organization’s core decisions, including resource allocation, market definitions, and means of growth. The goal of corporate strategy is to maximize value and fulfill the corporate vision. 

Business strategy is a tactical, short-term plan. It is developed to achieve specific goals toward the corporate strategy. Business strategy also strengthens an organization’s competitive advantage by supporting the long-term plan. 

Simply put, “corporate strategy informs business and functional strategies, not the other way around,” says Chung.

What Is the Difference Between Corporate and Business Strategy?

Determining the differences between corporate and business strategy can be done in five ways:

	Corporate strategy	Business strategy
1. Level	Organization-wide	Department-specific
2. Creator	Company leadership	Department heads
3. Time frame	Long-term (3-5 years)	Short-term (1-2 years)
4. Focus & objectives	Drives overall growth and value	Drives competitive advantage
5. Audience	Leadership and executives	Departmental teams

Business-level strategy vs. corporate-level strategy: a comparison

1. Level
   Corporate strategy: Throughout Apple’s history, it has used internal development through key decision makers, engineers, and researchers to enter new markets, from computers to music to smartphones. This development drove the company’s decision-making across the organization.
   
   Business strategy: To support Apple’s corporate strategy, its marketing teams created new campaigns for each stage of innovation. The campaigns drove sales and revenue, boosted Apple’s authority in the technology space, and evolved the company’s brand image.
   
2. Creator
   Corporate strategy: In 20222, Microsoft wanted to break into the gaming industry to increase profit and remain competitive. When it acquired gaming company Activision Blizzard, the decision was made at the highest level of the respective companies. The individual departments and employees were not involved in the process. 
   
   Business strategy: After Microsoft’s acquisition, it was the responsibility of individual departments to make the necessary changes for a smooth transition. Customer support, for example, had to be prepared to help users, and communications had to effectively and efficiently share information with the broader public. 
   
3. Time frame
   Corporate strategy: As with all large-scale changes, a new or developing corporate strategy cannot be achieved overnight. For example, sustainability goals are often long-term; in 2019, Harvard announced its goal to be fossil-fuel neutral by 2026.  
   
   Business strategy: To meet a corporate strategy goal, organizations can take smaller steps along the way. A year prior to Harvard’s 2019 announcement, the University began its composting program to reduce its waste footprint.
   
4. Focus & objectives
   Corporate strategy: McDonald’s is a multi-billion-dollar company that has built its reputation and worldwide brand during the past 70 years. To continue its growth, the company still must set goals and strive to meet them. 
   
   Business strategy: In Q2 of 2025, McDonald’s saw 6 percent growth in sales. This success was attributed to pricing value, marketing, scaling, and menu innovation. Each of these components drove McDonald’s competitive advantage and maintained its strong position in the market.
   
5. Audience
   Corporate strategy: Executive leadership is responsible for carrying out corporate strategy and aligning with the long-term vision. Individual decisions are less impactful, while focus on broader directives is crucial. 
   
   Business strategy: Department heads and employees are responsible for the day-to-day work to ensure goals are met along the way.

Tips for Developing Effective Corporate and Business Strategies

Both corporate and business strategies benefit from developing a roadmap using the following best practices:

1. Define a vision 

Your company’s vision should be clear, future-oriented, and motivating to teams across the organization. Crafting a vision statement is about setting the initial intention, so you can revisit and refine as needed over time.

2. Set comprehensive goals and objectives 

At this stage, goals will be ambitious — they are all about supporting the vision. However, they should also be specific and establish a timeline, for example, doubling a market share in three years. 

3. Allocate resources  

Take inventory of your company’s resources, especially those of its departments and employees. Each team has a role to play in meeting the goals set above, from marketing to operations to finance. Departments can develop plans and initiatives and determine the resources needed to achieve them. 

A new corporate strategy may also reveal holes in resourcing; filling in those gaps is important to fulfill evolving goals. 

4. Communicate

It may be necessary for executive leaders to launch the vision and set long-term goals, but that then needs to be communicated company-wide. Involving staff in collaborative planning, brainstorming, and feedback encourages a cohesive strategy and inspires others to invest in it, too.

5. Implement & track progress

Based on the strategy your company has established, implementation is the day-to-day work necessary to achieve it. Along the way, you will need to track progress through meaningful KPIs, based on the set goals and objectives. 

6. Assess, evaluate, analyze 

One of the most important steps of an effective corporate strategy is continuous improvement. If it is simply set to run on autopilot, it can be far too easy to stray from the vision as things naturally shift over time. Leadership must constantly assess, evaluate, and analyze to ensure positive outcomes. Leaders should also incorporate a feedback loop from employees and keep the door open for constructive commentary.

How to align corporate and business strategies

It’s not enough to simply create effective strategies by themselves. For best results, strategies at all levels must be coordinated and aligned. Think of cogs in a machine; each one turns the next, and together, they all operate the machine at once. 

ClearPoint Strategy outlines a process for creating highly aligned strategies across multiple levels of an organization. Traditionally, companies are layered across three levels: corporate, business, and functional. 

As we’ve discussed, corporate strategy is the highest level. It sets the vision, goals, and timeline, assuring that all other levels and their associated team members are on the same page. 

Business strategy translates those high-level corporate strategies into specific plans. Business strategies also allocate resources and prioritize focus areas.

Functional strategies put specific plans into action and carry out the essential functions, such as developing marketing campaigns or securing funding. 

“With the right executive sponsorship, an effective corporate strategy enables a business to achieve its desired financial and operational outcomes,” says Chung. “This can include increased revenues, improved cost efficiencies, a loyal customer base, and greater employee satisfaction from being part of an aligned and profitable culture.”

No matter their position within the company, all levels must be aligned to carry out the corporate strategy and ensure organizational success. Strong communication, trust, and a shared foundation are all key elements. 

Discover Harvard’s Corporate Strategy program

Are you ready to take your company to the next level? Register today for Corporate Strategy for Growth: Aligning Business Units for Strategic Impact. 

Frequently Asked Questions

Corporate strategy is a long-term plan, focused on fulfilling the corporate vision. Business strategy is a short-term plan that aims to achieve competitive advantage in pursuit of long-term goals. 

The key differences between the two strategies are established by: level, creator, timeframe, focus, and audience. 

Corporate strategy provides direction for growth and aligns all departments and employees under a common goal. Business strategy sets the plans into motion and meets shorter-term objectives along the way.

All levels of a company must work together and take responsibility for their roles. Communicating, organizing, and planning collaboratively are crucial to staying on task and remaining aligned. 

Best practices in developing effective corporate and business strategies are: 

• Defining a vision 
• Setting goals
• Allocating resources
• Communicating 
• Implementing
• Assessing & analyzing 

There are many opportunities to develop your skills in strategic management. Harvard DCE’s Professional & Executive Development offers comprehensive programs to leaders, including Corporate Strategy for Growth: Aligning Business Units for Strategic Impact.