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    Levels of Strategy

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    rudrimano
    There are three levels of strategy: 1. Corporate level - Determines overall scope and adds value to business units to meet stakeholder expectations 2. Business level (SBU) - Focuses on how to compete successfully in particular markets 3. Operational/Functional level - Implements strategy through different parts of the organization

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    Levels of Strategy

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    rudrimano
    48 views11 pages
    There are three levels of strategy: 1. Corporate level - Determines overall scope and adds value to business units to meet stakeholder expectations 2. Business level (SBU) - Focuses on how to compete successfully in particular markets 3. Operational/Functional level - Implements strategy through different parts of the organization

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    There are three levels of strategy: 1. Corporate level - Determines overall scope and adds value to business units to meet stakeholder expectations 2. Business level (SBU) - Focuses on how to compete successfully in particular markets 3. Operational/Functional level - Implements strategy through different parts of the organization

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    48 views11 pages

    Levels of Strategy

    Uploaded by

    rudrimano
    There are three levels of strategy: 1. Corporate level - Determines overall scope and adds value to business units to meet stakeholder expectations 2. Business level (SBU) - Focuses on how to compete successfully in particular markets 3. Operational/Functional level - Implements strategy through different parts of the organization

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    Name of Institution

    Strategic Management
    Levels of Strategy
    Module I

    1
    Name of Institution

    What are level of strategy?

    Mona Chaudhary
    Name of Institution

    Levels of Strategy
    Levels of Strategy Name of Institution

    4
    Name of Institution
    LEVELS OF STRATEGY
     Corporate level
    • Determine overall scope of the organisation
    • Add value to the different business units
    • Meet expectations of stakeholders
     Business level (SBU)
    • How to compete successfully in particular markets
     Operational/ Functional Level
    • How different parts of organisation deliver strategy
    Name of Institution
    Definition of strategic business units
    The SBUs are the natural ‘grouping’ of part of a corporation.
    • The SBU has a range of related products/services which
    has similar technologies and production processes.
    • The products/services are sold in similar or related market
    segments.
    • The production/services are sold against a well-defined
    set of competitors.
    • An SBU is managed by an SBU manager, largely as an
    independent unit.
    • The SBU has its own set of goals and strategies.
    • Each SBU in a particular organization should be able to
    operate independently of any other SBU.
    Name of Institution

    Strategic Business Unit (SBU)

    A strategic business unit (SBU) is a part of an


    organisation for which there is a distinct external
    market for goods or services that is different from
    another SBU
    Three levels of strategy Name of Institution

    1. level: The corporate level


    At this level the fundamental task is to develop a
    balanced portfolio of businesses which will achieve the
    goals of the corporation and satisfy its stakeholders.
    2. level: The strategic business unit level (SBU)
    At this level the business, or set of activities is given
    and the major task for strategic planner at this level is
    for business to succeed against competitors and also
    satisfy corporate success criteria.
    3. level: The functional level:
    At this level the major task is to provide an appropriate
    functional strategies ( finance and accounting,
    marketing, R+D, production, personnel) for SBU or
    corporate level strategy.
    Levels of Planning Name of Institution

    Corporate- Business- Functional


    level Plan level Plan level Plan

    Goal Corporate Divisional Functional


    Setting mission & goals goals goals

    Strategy Corporate- Business- Functional-


    Formulation level strategy level strategy level strategy

    Design of Design of Design of


    Corporate Business-unit Functional
    Strategy Structure
    Structure Structure
    Implementation Control
    Control Control
    Who Plans? Name of Institution

    • Corporate level planning is done by top managers.


    – Also approve business and functional level plans.
    – Top managers should seek input on corporate
    level issues from all management levels.
    • Business and functional planning is done by
    divisional and functional managers.
    – Both management levels should also seek
    information from other levels.
    – Responsibility for specific planning may lie at a
    given level, but all managers should be involved.
    Name of Institution

    THANK YOU !

    11

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