BESM-chapter 8

 

levels of strategy 

1. Corporate Level Strategy

This is the highest level of strategy.

• Focus: Overall direction of the entire organization
• Decides:
  • Which businesses to enter or exit
  • Growth, stability, or expansion
• Prepared by: Top management

Example:
A company decides to expand from textile business into banking or insurance.

2. Business Level Strategy

This is the middle level strategy.

• Focus: How to compete in a specific market or industry
• Decides:
  • Pricing strategy
  • Product quality
  • Competitive advantage
• Prepared by: Business unit managers

Example:
A company chooses to compete by offering low cost products or high quality premium products.

3. Functional Level Strategy

This is the lowest level strategy.

• Focus: Day-to-day operations in different departments
• Includes:
  • Marketing strategy
  • HR strategy
  • Finance strategy
  • Production strategy
• Prepared by: Department heads

Example:
Marketing department runs advertising campaigns to increase sales.

 In short:

• Corporate level → What business to do
• Business level → How to compete
• Functional level → How to implement

रणनीतिक स्तरहरू (Levels of Strategy)

संगठनमा रणनीति सामान्यतया ३ वटा तह (levels) मा विभाजन गरिन्छ:

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१. कर्पोरेट स्तरको रणनीति (Corporate Level Strategy)

यो सबैभन्दा उच्च स्तरको रणनीति हो।

• केन्द्रबिन्दु: सम्पूर्ण संगठनको समग्र दिशा
• निर्णयहरू:
  • कुन व्यवसायमा प्रवेश गर्ने वा छोड्ने
  • विस्तार गर्ने कि स्थिर रहने
• तयार गर्ने: उच्च व्यवस्थापन (Top Management)

उदाहरण:
एउटा कम्पनीले कपडा व्यवसायबाट बैंकिङ वा बीमा क्षेत्रमा विस्तार गर्ने निर्णय गर्नु।

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२. व्यवसाय स्तरको रणनीति (Business Level Strategy)

यो मध्य स्तरको रणनीति हो।

• केन्द्रबिन्दु: बजारमा कसरी प्रतिस्पर्धा गर्ने
• निर्णयहरू:
  • मूल्य निर्धारण (Pricing)
  • उत्पादनको गुणस्तर
  • प्रतिस्पर्धात्मक फाइदा कसरी बनाउने
• तयार गर्ने: व्यवसाय इकाइका व्यवस्थापक

उदाहरण:
कम्पनीले सस्तो मूल्यमा सामान बेच्ने वा उच्च गुणस्तरको प्रिमियम उत्पादन दिने रणनीति लिनु।

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३. कार्यात्मक स्तरको रणनीति (Functional Level Strategy)

यो सबैभन्दा तल्लो स्तरको रणनीति हो।

• केन्द्रबिन्दु: दैनिक कार्य सञ्चालन
• समावेश हुने:
  • मार्केटिङ रणनीति
  • मानव संसाधन (HR)
  • वित्त (Finance)
  • उत्पादन (Production)
• तयार गर्ने: विभागीय प्रमुखहरू

उदाहरण:
मार्केटिङ विभागले बिक्री बढाउन विज्ञापन अभियान सञ्चालन गर्नु।

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🔑 छोटकरीमा:

• कर्पोरेट स्तर → कुन व्यवसाय गर्ने
• व्यवसाय स्तर → कसरी प्रतिस्पर्धा गर्ने
• कार्यात्मक स्तर → कसरी कार्यान्वयन गर्ने

Types of Corporate Level Strategy. 

Corporate Level Strategy (Meaning)

It is the overall strategy of a company that decides:

• In which businesses to operate
• How to grow or survive
• How to manage different business units

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Main Types of Corporate Level Strategy

1. Stability Strategy

• The company continues its current activities without major changes.
• Focus is on maintaining performance.
• Used when business is doing well and environment is stable.

👉 Example: A company keeps producing same products in same market.

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2. Expansion / Growth Strategy

• The company tries to grow and expand its business.
• It may increase:
  • Production
  • Market share
  • New products or markets

👉 Methods:

• Opening new branches
• Launching new products
• Entering international markets

👉 Example: A company opening new factories.

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3. Retrenchment Strategy

• The company reduces its size or operations to survive difficult situations.
• Used during losses or crisis.

👉 Methods:

• Cost cutting
• Closing unprofitable units
• Layoffs

👉 Example: Closing a branch that is making loss.

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4. Combination / Mixed Strategy

• The company uses different strategies at the same time.
• For example:
  • Growth in one area
  • Retrenchment in another

👉 Example: Expanding one product line while cutting another.

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Simple Summary Table

Strategy Type	Main Idea
Stability	No major change
Expansion	Growth and development
Retrenchment	Reduce to survive
Combination	Mix of all strategies

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Corporate Level Strategy (अर्थ)

Corporate level strategy भनेको संस्थाले कुन–कुन व्यवसाय गर्ने, कसरी बढ्ने र कसरी सञ्चालन गर्ने भन्ने सम्बन्धमा बनाइने समग्र योजना हो।

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Corporate Level Strategy का मुख्य प्रकारहरू

1. Stability Strategy (स्थिरता रणनीति)

• यसमा संस्था हालकै कामलाई निरन्तरता दिन्छ।
• कुनै ठूलो परिवर्तन गरिँदैन।
• जब व्यवसाय राम्रो चलिरहेको हुन्छ, तब प्रयोग हुन्छ।

👉 उदाहरण:
एउटा उद्योगले उही उत्पादन र उही बजारमा काम जारी राख्नु।

2. Expansion / Growth Strategy (विस्तार वा वृद्धि रणनीति)

• संस्था आफ्नो व्यवसाय विस्तार गर्न चाहन्छ।
• उत्पादन, बजार वा नाफा बढाउने लक्ष्य हुन्छ।

👉 तरिका:

• नयाँ बजारमा प्रवेश
• नयाँ उत्पादन ल्याउने
• शाखा विस्तार गर्ने

👉 उदाहरण:
कम्पनीले नयाँ सहरमा आफ्नो शाखा खोल्नु।

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3. Retrenchment Strategy (संकोचन रणनीति)

• संस्था आफ्नो खर्च वा काम घटाउँछ।
• घाटा हुँदा वा समस्या हुँदा प्रयोग हुन्छ।

👉 तरिका:

• खर्च कटौती
• कर्मचारी घटाउने
• घाटामा चलेका विभाग बन्द गर्ने

👉 उदाहरण:
नोक्सान भइरहेको शाखा बन्द गर्नु।

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4. Combination / Mixed Strategy (मिश्रित रणनीति)

• संस्था एकैचोटि विभिन्न रणनीति प्रयोग गर्छ।
• केही क्षेत्रमा विस्तार, केही क्षेत्रमा संकोचन।

👉 उदाहरण:
एउटा कम्पनीले नयाँ उत्पादन सुरु गर्छ तर पुरानो घाटामा रहेको उत्पादन बन्द गर्छ।

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छोटो निष्कर्ष

• Stability = स्थिर रहनु
• Expansion = बढ्नु
• Retrenchment = घट्नु
• Combination = मिश्रित प्रयोग

Business level strategy

Business-Level Strategy means how a firm competes in a particular market or industry to gain competitive advantage.

The main types of business-level strategies are based on Michael Porter’s framework.

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1. Cost Leadership Strategy

This strategy focuses on becoming the lowest-cost producer in the industry.

Key idea:

Produce goods/services at lower cost than competitors.

Features:

• Efficient operations
• Cost control
• Economies of scale

Example:

A company like Walmart uses low pricing to attract customers.

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2. Differentiation Strategy

This strategy focuses on making products or services unique and valuable.

Key idea:

Offer something different that customers are willing to pay more for.

Features:

• High quality
• Innovation
• Strong brand image

Example:

Apple Inc. differentiates through design and innovation.

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3. Focus Strategy

This strategy targets a specific market segment or niche.

Types of Focus Strategy:

a) Cost Focus

• Low cost in a specific segment
• Example: Budget products for a particular group

b) Differentiation Focus

• Unique products for a niche market
• Example: Luxury or specialized products

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4. Integrated Cost Leadership & Differentiation Strategy

This strategy combines low cost and differentiation.

Key idea:

Provide good value (reasonable price + acceptable uniqueness)

Example:

Companies try to balance both cost and quality.

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Conclusion (Simple)

• Cost Leadership → Cheapest
• Differentiation → Unique
• Focus → Specific market
• Integrated → Balance of cost & uniqueness

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Business Level Strategy का प्रकारहरू (नेपालीमा)

Business Level Strategy भनेको कुनै संस्था/व्यवसायले एउटै उद्योग वा बजारभित्र प्रतिस्पर्धामा कसरी सफल हुने भन्ने योजना हो। यो अवधारणा विशेष गरी Michael Porter ले विकास गरेका हुन्।

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१. Cost Leadership Strategy (लागत नेतृत्व रणनीति)

यस रणनीतिमा संस्था उद्योगमै सबैभन्दा कम लागतमा उत्पादन गर्ने प्रयास गर्छ।

मुख्य कुरा:

कम मूल्यमा वस्तु वा सेवा उपलब्ध गराउने

विशेषताहरू:

• लागत नियन्त्रण
• ठूलो मात्रामा उत्पादन (economies of scale)
• दक्ष व्यवस्थापन

उदाहरण:

Walmart ले सस्तो मूल्यमा सामान बेचेर ग्राहक आकर्षित गर्छ।

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२. Differentiation Strategy (भिन्नता रणनीति)

यस रणनीतिमा संस्था आफ्नो उत्पादन वा सेवालाई अरूभन्दा फरक र विशेष बनाउँछ।

मुख्य कुरा:

गुणस्तर, डिजाइन वा विशेषतामा फरक देखाउने

विशेषताहरू:

• उच्च गुणस्तर
• नयाँपन (innovation)
• ब्रान्ड मूल्य

उदाहरण:

Apple Inc. ले आफ्नो डिजाइन र प्रविधिबाट फरक पहिचान बनाएको छ।

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३. Focus Strategy (केन्द्रित रणनीति)

यस रणनीतिमा संस्था विशेष समूह (niche market) लाई लक्षित गर्छ।

प्रकारहरू:

(क) Cost Focus

• विशेष समूहका लागि सस्तो उत्पादन
• उदाहरण: कम आय भएका ग्राहकका लागि सस्तो सामान

(ख) Differentiation Focus

• विशेष समूहका लागि फरक/उच्चस्तरीय उत्पादन
• उदाहरण: लक्जरी सामान

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४. Integrated Strategy (एकीकृत रणनीति)

यस रणनीतिमा संस्था लागत पनि कम र गुणस्तर पनि राम्रो बनाउने प्रयास गर्छ।

मुख्य कुरा:

उचित मूल्यमा राम्रो गुणस्तर दिनु

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निष्कर्ष (सजिलो तरिकाले)

• Cost Leadership → सस्तो
• Differentiation → फरक
• Focus → विशेष समूह
• Integrated → सस्तो + गुणस्तर

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Functional-Level Strategy 

Functional-level strategy refers to the specific plans and policies developed by different departments (marketing, finance, HR, etc.) to implement business-level strategy effectively.

It focuses on “how to do” activities in each function.

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1. Marketing Strategy (विपणन रणनीति)

Focus: Customers and market handling

Key Types:

• Product Strategy – design, quality, branding
• Pricing Strategy – skimming, penetration, discount
• Promotion Strategy – advertising, sales promotion
• Distribution Strategy – channels, logistics

👉 Example: A company may use low pricing + heavy promotion to attract customers.

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2. Production / Operations Strategy (उत्पादन रणनीति)

Focus: Efficient production

Key Types:

• Mass production strategy – large-scale production
• Lean production – waste reduction
• Quality management (TQM)
• Process innovation

👉 Goal: Reduce cost + improve quality

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3. Financial Strategy (वित्तीय रणनीति)

Focus: Proper use of funds

Key Types:

• Capital budgeting strategy – investment decisions
• Working capital management
• Dividend policy
• Cost control strategy

👉 Goal: Profitability + liquidity balance

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4. Human Resource Strategy (मानव संसाधन रणनीति)

Focus: People management

Key Types:

• Recruitment strategy – hiring skilled employees
• Training & development strategy
• Compensation strategy – salary, incentives
• Performance management strategy

👉 Goal: Increase productivity and motivation

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5. Research & Development (R&D) Strategy

Focus: Innovation and improvement

Key Types:

• Product innovation strategy
• Process innovation strategy
• Technology adoption

👉 Example: Introducing new features in products

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6. Information Technology (IT) Strategy

Focus: Digital support system

Key Types:

• Automation strategy
• Data management strategy
• E-business strategy

👉 Goal: Faster decision-making + efficiency

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7. Procurement / Purchasing Strategy

Focus: Buying raw materials

Key Types:

• Supplier selection
• Cost negotiation
• Inventory management

👉 Goal: Get quality materials at low cost

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8. Customer Service Strategy

Focus: After-sales service

Key Types:

• Customer support system
• Complaint handling
• Service quality improvement

👉 Goal: Customer satisfaction and loyalty

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Key Features of Functional-Level Strategy

• Short-term and specific
• Department-focused
• Supports business strategy
• Action-oriented

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Simple Conclusion 

Functional-level strategies are essential because they translate higher-level strategies into practical actions. Without effective functional strategies, even the best business strategy cannot success.

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Functional Level Strategy (कार्यात्मक तहको रणनीति)

कार्यात्मक तहको रणनीति भनेको संस्थाका विभिन्न विभागहरू (जस्तै– विपणन, वित्त, मानव संसाधन आदि) ले व्यवसायिक रणनीति कार्यान्वयन गर्न बनाउने योजना र नीति हो।

यसले “काम कसरी गर्ने ?” भन्ने कुरामा ध्यान दिन्छ।

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१. विपणन रणनीति (Marketing Strategy)

केन्द्रबिन्दु: ग्राहक र बजार

मुख्य प्रकार:

• उत्पादन रणनीति (Product)
• मूल्य निर्धारण रणनीति (Pricing)
• प्रवर्द्धन रणनीति (Promotion)
• वितरण रणनीति (Place)

👉 उद्देश्य: बिक्री वृद्धि र ग्राहक सन्तुष्टि

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२. उत्पादन/सञ्चालन रणनीति (Production/Operations Strategy)

केन्द्रबिन्दु: उत्पादन प्रक्रिया

मुख्य प्रकार:

• ठूलो मात्रामा उत्पादन (Mass Production)
• Lean production (अपव्यय घटाउने)
• गुणस्तर व्यवस्थापन (TQM)
• प्रक्रिया सुधार

👉 उद्देश्य: लागत घटाउने र गुणस्तर बढाउने

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३. वित्तीय रणनीति (Financial Strategy)

केन्द्रबिन्दु: पैसाको व्यवस्थापन

मुख्य प्रकार:

• लगानी निर्णय (Capital budgeting)
• कार्यशील पूँजी व्यवस्थापन
• लाभांश नीति
• लागत नियन्त्रण

👉 उद्देश्य: नाफा र वित्तीय स्थिरता

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४. मानव संसाधन रणनीति (Human Resource Strategy)

केन्द्रबिन्दु: कर्मचारी व्यवस्थापन

मुख्य प्रकार:

• भर्ती रणनीति
• तालिम तथा विकास
• पारिश्रमिक नीति
• कार्यसम्पादन मूल्याङ्कन

👉 उद्देश्य: कर्मचारीको दक्षता र उत्प्रेरणा बढाउने

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५. अनुसन्धान तथा विकास रणनीति (R&D Strategy)

केन्द्रबिन्दु: नवीनता (Innovation)

मुख्य प्रकार:

• नयाँ उत्पादन विकास
• प्रविधि सुधार
• प्रक्रिया नवप्रवर्तन

👉 उद्देश्य: प्रतिस्पर्धात्मक लाभ प्राप्त गर्नु

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६. सूचना प्रविधि रणनीति (IT Strategy)

केन्द्रबिन्दु: प्रविधिको प्रयोग

मुख्य प्रकार:

• स्वचालन (Automation)
• डाटा व्यवस्थापन
• अनलाइन व्यवसाय प्रणाली

👉 उद्देश्य: कार्यक्षमता र निर्णय क्षमता बढाउने

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७. खरिद (Procurement) रणनीति

केन्द्रबिन्दु: कच्चा पदार्थ खरिद

मुख्य प्रकार:

• आपूर्तिकर्ता छनोट
• लागत मोलमोलाइ
• स्टक व्यवस्थापन

👉 उद्देश्य: कम लागतमा राम्रो सामग्री प्राप्त गर्नु

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८. ग्राहक सेवा रणनीति (Customer Service Strategy)

केन्द्रबिन्दु: बिक्री पछिको सेवा

मुख्य प्रकार:

• ग्राहक सहायता
• गुनासो समाधान
• सेवा सुधार

👉 उद्देश्य: ग्राहक सन्तुष्टि र वफादारी

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मुख्य विशेषताहरू

• छोटो अवधिको हुन्छ
• विभाग केन्द्रित हुन्छ
• व्यवसायिक रणनीतिलाई समर्थन गर्छ
• व्यवहारिक (action-oriented) हुन्छ

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निष्कर्ष (Conclusion)

कार्यात्मक तहको रणनीति बिना व्यवसायिक रणनीति सफल हुन सक्दैन, किनकि यसले योजनालाई व्यवहारमा रूपान्तरण गर्छ।

strategic decision

A strategic decision is a broad, long-term, and future-oriented decision taken by top-level management to determine the overall direction, scope, and success of an organization. It involves selecting the best alternative after analyzing both internal factors (such as strengths and weaknesses) and external factors (such as opportunities and threats). These decisions require significant resources, involve a high degree of risk and uncertainty, and affect the entire organization rather than a single department. Strategic decisions are complex in nature, not made frequently, and once implemented, they are difficult to reverse. They play a key role in helping the organization achieve its long-term objectives, maintain competitive advantage, and adapt to changing business environments.