Strat
Strat
Strat
ORGANIZATIONAL STRATEGIES
In most corporations there are several
levels of management.
Corporate strategy is the highest of these levels in
the sense that it is the broadest – applying to all
parts of the firm – while also incorporating the
longest time horizon. It gives direction to
corporate values, corporate culture, corporate
goals, and corporate missions.
Under this broad corporate strategy there are
typically business-level – (designed to position
the strategic business unit in a diversified
corporation. Each firm formulates a business
strategy in order to achieve a sustainable
competitive advantage) - competitive strategies
and functional (developed in key areas in the
organization such as marketing, finance,
production; consistent with long term objectives)
unit strategies. Hence, organizational strategy is
divided into three levels, the corporate level
strategy, the business level strategy, and the
functional level strategies
Operational strategy is an additional level of
strategy encouraged by Peter Drucker in his
theory of management by objectives (MBO).
Very narrow in focus and deals with day-
to-day operational activities such as
scheduling criteria.
Must operate within a budget but is not at
Types of Corporate Strategies liberty to adjust or create that budget.
Operational level strategies are informed
by business level strategies which, in turn,
are informed by corporate level strategies.
Dynamic Strategy
Since the turn of the millennium, some firms
have reverted to a simpler strategic structure
driven by advances in information
technology.
It is felt that knowledge management systems
should be used to share information and
create common goals. Strategic divisions are
Business Strategy thought to hamper this process. This notion
Generic Competitive Strategies of strategy has been captured under the
introduced by Michael Porter rubric of dynamic strategy, popularized by
Carpenter and Sanders.