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strategic managent leves.pdf

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strategic managent leves.pdf

  1. 1. Levels of strategy G.K.Ayesha Amali BAD/MG/2019/F/0042 MAN 3120(strategic management)
  2. 2. 01.Three levels of strategy. 1:1. Corporate level strategy.  Type of corporate level strategy.  Why create corporate strategy. 1:2. Business level strategy.  Type of business level strategy.  Why middle managers should create the business level strategy. 1:3. Functional level strategy. 02. Differences of the strategic levels. 03. Levels of strategy examples.
  3. 3. Three Levels Of Strategy Coparate Level Strategic Business Level Operational or Functional Level
  4. 4. 01.Corporate Level strategy • The corporate strategy define the organization’s overall direction and the high-level ideas of how to move towards it. These plans are usually created by a select strategy group such as the CEO and the top management. • Corporate level strategy occupies the height level of the decisions making.
  5. 5. Types of corporate level strategy  Growth expansion in to new products and market. • Concentration • Vertical integration. • Horizontal integration. • Diversification.  Stability maintenance of the status of the organization  Renewal Redirection of the firm in to new markets
  6. 6. Why create a corporate strategy? • In the corporate strategic plan, we will determine the markets in which we compete as an organization. • Then it will direct the certain of business unit level and functional level strategies. • These strategies, in turn, will guide the down stream decisions made by employees of all levels.
  7. 7. 02.Business strategy level • Sitting under the corporate strategy, the business strategy is a means to achieve the goals of a specific business unit in the organization. • Implementing this strategy level is only useful for organizations with multiple business unit.
  8. 8. Three type of business level strategy 1. Cost leadership. 2. Differentiation. 3. Market focus.
  9. 9. Why middle managers should create the business level strategy? • Strategies at the business level should be constructed by the heads of business units and other middle managers within each unit. It important to include a range of managers in the strategy process:  It increases buy-in  It improve ownership
  10. 10. 03.Functional level strategy • Focus is on improving the effectiveness of operations within a company. • At the functional level of strategy, decisions made by employees are often described as tactical decitions. • Which is done by;  Marketing  Manufacturing  Finance  Research and development  Human resource
  11. 11. Head office Division A Business function Division B Business function Division C Business function 01. Corporate level 02. Business level 03. functional level Differences of the strategic levels
  12. 12. Levels of strategy – Tata example • Corporate level- Tata group diversifying from arieas such as steel & chemicals production to IT consultancy • Business level – Tata Nano competes on price • Functional level- constant updating of software and services to meet market needs.
  13. 13. Thank you

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