BCG: What is the exact difference between "Corporate Development" and "Corporate Strategy"

Question

Hi, I have a question on two BCG capabilities: what is the exact difference between "Corporate Development" and "Corporate Strategy" (in terms of practice areas)

To me, these two areas sound practically identical! I would expect "classical" questions around portfolio analyses, growth via M&A, value creation across different BUs, etc.)

So how do they draw the line between these two areas? It seems confusing to me.

Thanks!

Answer 1

Hi Anonymous!

Corporate Development at BCG is more of a superordinate term for their Corporate Finance Practice! So, compared to Corporate Strategy/Portfolio Mgmt, what you will find here are way more technical value driver analyses, capital market diagnostics, and recommendations around their concept of Total Shareholder Return (TSR) (which is conceptually a bit different from McKinsey's measure TRS btw!)

Let me know if you need more clarification!

Cheers, Sidi

Answer 2

Hi,

These areas are different not only in BCG but in most of the S&P500 companies:

Corporate strategy department is responsible for overall company strategy and specific strategic initiatives. (It is what you basically see in the typical strategic cases)
Corporate development department is responsible for M&A deals, financial restructuring, fundraising, etc.

BCG is working with these clients on these particular topics and has the two corresponding departments

Best!