Corporations do no grow themselves. The most successful companies, particularly the large ones, grow and expand through the creative and judicious use of time, money and resources. Within a successful company, the people responsible for a company’s overall strategic vision are those involved in corporate business development. The word itself can have an aura or mystique, particularly if a company has large saturation in a society. But what it really boils down to is strategic development.
Here is a simple example of corporate business development in action. A certain company offers extended warranties on the appliances they sell. The company that makes the appliances does not provide the warranty. A business development person made a deal with an insurance or service company. The service company provides the warranty, and the service company and the company that sold the appliance share in the profit. That in a nutshell is what good business development does, extending a company’s profit reach in strategic ways.
Looked at more closely, people involved in a company’s corporate business development are responsible for the planning and execution of a wide range of strategies to meet specific organizational objectives. For many companies this part of this means maximizing profits and brand identity. There is no hard and fast rule for successful corporate development. Often this happens as a shared responsibility between the CEO of a company and the corporate development team responsible for the company’s overall vision of growth.
Much of the success or failure of corporate development strategies depends greatly on the current circumstances of the company and the area where development is desired. Large companies have many teams responsible for corporate development, while smaller ones may only have a few individuals. Corporate development does not encompass a short term process or goal. It is developed in the longterm and refined and adjusted as needed.
The key to good business development is in allowing companies to profit by doing something that is tangential to their overall mission. Sometimes this allows profits to be so good that this becomes part of the companies core mission. Other times good corporate development supports the brand of the business and its sustainability over time. It is important to understand that one does not see the business development of a company from the outside, particularly in all the deals that fail along the way. Good business development means protecting the companies brand image.
It is also important to understand that business development is not executed according to one set of rules. Even though corporate business development is a strategic process involved in evaluation, asset, acquisition opportunities, strategic investment decisions, partnerships and alliances, and this involvement is spread across many different facets of a company, each company is unique, and that uniqueness shapes its overall vision. The very best deals have never been done before, the very best strategies are new, and waiting to be developed. Corporate business development allows this to happen through a process that unifies new ideas and people with a company’s overall goals.