The Three Levels of Business Strategy :: Business Management Studies Essays

The Three directs of Business StrategyStrategies can be formulated on three different levels Corporate level, Business building block level, and Functional or departmental levelStrategy may be about competing and surviving as a firm, products aredeveloped by business units. The role of the corporation is to mangeits business units and products so that each is competitive and sothat each contributes to corporeal purposes.Corporate Level StrategyCorporate level system fundamentally is have-to doe with with the selectionof businesses in which the company should compete and with thedevelopment and coordination of that portfolio of businesses.Corporate level strategy is concerned with Reach defining the issues that are corporate responsibilities these might include identifying the overall goals of the corporation, the types of businesses in which the corporation should be involved, and the way in which businesses will be integrate and managed. Competitive contact defining wher e the corporation competition is to be localized. Managing activities and business interrelationships corporate strategy seeks to develop synergies by sharing and coordinating staff and former(a) resources across business units, investing financial resources across business units and using business units to complement other corporate business activities. Igor Ansoff introduced the concept of synergy to corporate strategy. Management Practices corporations decide how business units are to be governed through direct corporate intervention (centralization)or through more or less autonomous political relation (decentralization) that relies on persuasion and rewardsCorporations are responsible for creating value through theirbusinesses. They do so by managing their portfolio of businesses,ensuring that the businesses are successful over the long-term,developing business units, and sometimes ensuring that each businessis compatible with others in the portfolio.Business Unit Le vel StrategyA strategical business unit may be a division, product line, or otherprofit center that can be planned independently from the otherbusiness units of the firm.At the business unit level, the strategic issues are less about thecoordination of operating units and more about developing andsustaining a competitive advantage for the goods and services that areproduced. At the business level, the strategy formulation phase dealswith Positioning the business against rivals Anticipating changes in demand and technologies and adjusting the strategy to accommodate them. Influencing the nature of competition through strategic actions such as unsloped integration and through political actions such as lobbying.Michael porter identified three generic strategies (cost leadership,differentiation, and focus) that can be implemented at the businessunit level to create a competitive advantage and defend against the