Corporate strategy identifies the industries and markets in which a firm will compete.
Corporate strategists make decisions that implement these choices, including investment
in and divestment of businesses as well as allocation of resources among existing businesses. In essence, they manage the portfolio of businesses in which the firm participates,
investing more or less in those businesses as needs shift in the broader market. See the
sidebar “Corporate Strategy at Eaton Corporation” for a detailed description of the evolution of a corporate strategy over time.