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Strategy at Different Hierarchy Levels

Strategy at Different Hierarchy Levels

Strategies at different levels are the outcomes of different planning needs. There are three levels of Strategy – 1.Corporate level;

2.Business unit level; and

3.Functional or departmental level.

Strategy at Different Hierarchy Levels

1.Corporate Level Strategy: Corporate level strategy fundamentally is concerned with selection of businesses in which a company should compete and also with the development and coordination of that portfolio of businesses.

Corporate level strategy should be able to answer three basic questions:

Suitability- Whether the strategy would work for the accomplishment of common objective of the company.

Feasibility-Determines the kind and number of resources required to formulate and implement the  strategy.

Acceptability- It is concerned with the stakeholders’ satisfaction and can be financia land non-financial.

2.Business Unit Level Strategy: Strategic business unit (SBO) may be any profit centre that can be planned independently from the other business units of a corporation. At the business unit level, the strategic issues are about practical coordination of operating units and developing and sustaining a competitive advantage for the products and services that are produced.

Strategy at Different Hierarchy Levels

3.Functional Level Strategy: The functional level is the level of the operating divisions and departments. The strategic issues at this level are related to functional business processes and value chain. Functional level strategies in R&D, operations, manufacturing, marketing, finance, and human resources involve the development and coordination of resources through which business unit level strategies can be executed effectively and efficiently.

Strategy at Different Hierarchy Levels


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