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Different Levels of Strategy

This document discusses the three levels of strategic management - corporate level, business level, and operational/functional level. The corporate level deals with the overall plan for the organization and strategic business units. Strategy at this level focuses on growth, stability, or renewal. The business level focuses on how each business unit will compete and allocates resources. Common strategies are cost leadership, differentiation, and market focus. Finally, the operational/functional level improves operations in areas like manufacturing and marketing. Coordination across all three levels is important for increasing profitability.

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ELMUNTHIR BEN AMMAR
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1K views12 pages

Different Levels of Strategy

This document discusses the three levels of strategic management - corporate level, business level, and operational/functional level. The corporate level deals with the overall plan for the organization and strategic business units. Strategy at this level focuses on growth, stability, or renewal. The business level focuses on how each business unit will compete and allocates resources. Common strategies are cost leadership, differentiation, and market focus. Finally, the operational/functional level improves operations in areas like manufacturing and marketing. Coordination across all three levels is important for increasing profitability.

Uploaded by

ELMUNTHIR BEN AMMAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Corporate

Operational Business

Functional

Prepared by:- Guided by:-


TANDEL CHITRANGKUMAR T.
(120070720013)
Corporate
level
Business
level
Operational or
functional level
• Top management’s overall plan for
the entire organization and its
strategic business units.
• Corporate level strategy occupies
the heights level of DECISION
MAKING.
• the nature of the decisions tends to
be value oriented, conceptual than
the Business level, and
Operational or Functional level.
◦ Growth: expansion into new products and
markets.
◦ Stability: maintenance of the status of the
organization.
◦ Renewal: redirection of the firm into new
markets.
 Growth Strategy
◦ Seeking to increase the organization’s business by expansion
into new products and markets.

 Types of Growth Strategies


◦ Concentration
◦ Vertical integration
◦ Horizontal integration
◦ Diversification
 Concentration: Focusing on a primary line of
business and increasing the number of products offered
or markets served.
 Vertical Integration: 1). Backward vertical
integration.
2). Forward vertical
integration.
 Horizontal Integration: Combining operations with
another competitor in the same industry to increase
competitive strengths.
 Diversification:
1). Related Diversification: Expanding
by merging with firms in different, but
related industries.
2). Unrelated Diversification: Growing
by merging with firms in unrelated
industries where higher financial returns
are possible.
 Stability Strategy: A strategy that seeks to
maintain the status with the uncertainty of the
environment, when the industry is experiencing slow-
or no-growth conditions.

 Renewal Strategy: Developing strategies to


counter organization weaknesses that are leading to
performance declines.
 A strategy that seeks to determine how
an organization should compete in each
of its SBUs (strategic business units).

 At Business-level ALLOCATION of re-


sources among Functional-level an
COORDINATE with the Corporate
level to the ACHIEVEMENT of the
Corporate level OBJECTIVES.
 Cost leadership: Attaining, then using the lowest
total cost basis as a competitive advantage.

 Differentiation: Using product features or services to


distinguish the firm’s offerings from its competitors.

 Market focus: Concentrating competitively on


a specific market segment.
 Focus is on improving the
effectiveness of operations
within a company.
 Which is done by:
◦ Manufacturing
◦ Marketing
◦ Materials management
◦ Research and development
◦ Human resources
TO INCREASE THE PROFIT, CO-ORDINATION
AMONG LEVELS ARE IMPORTANT....

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