Many employing organizations in the United Kingdom and elsewhere are finding it increasingly important to have an effective strategy for recruiting and developing higher education graduates. Numerous external and internal factors affect employers' graduate recruitment and development strategies. The following main approaches to graduates' entry into organizations have been identified: (1) high-potential corporate management schemes; (2) elite functional or business unit streams within wider entry; (3) professional or functional schemes; (4) direct job entry; and (5) ad hoc recruitment. Although each approach has distinct features, their individual distinctiveness has blurred in recent years. The three main activities in a graduate strategy are as follows: planning demand; recruitment and selection; and managing entry, training, and development. The Institute of Employment Studies developed a Graduate Value Chain that explored each activity and identified emerging key issues, including the following: (1) aligning graduate strategy with the varied business needs for graduates; (2) relating needs and entry approaches to the increasingly diverse supply of graduates; (3) the need to make the best use of e-recruitment; (4) development of an "umbrella approach"; (5) attracting and developing high-potential graduates; (6) avoiding overselling on the graduate development promise; and (7) deciding on the right balance between the center and the line. (Contains 54 references.) (MN)