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

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