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LEVELS OF STRATEGY

Corporate Level : strategies at corporate level focus on the


scope of business activities-what product portfolios to build, to
expand and to consolidate simultaneously with the businesses a
firm is about to abandon.
Their time frame is usually the longest five years or more.
Divisional or Business level : These strategies are directly
concerned with the future plans of the profit centers which are
divisionalised in large enterprises.
These are the sub-strategies as they devolve from the grand
strategies and have market orientation because these deal with
the current and future product lines and current and future
markets including overseas businesses.
Operational or functional level : these strategies target the
functional aspects of operations and look at the functional
strategies
of
marketing,
finance,
human
resources,
manufacturing, information systems, etc.
when functional strategies are designed to enmesh with the
strategies at other levels, they reinforce Their acceptance and

S.NO

Characteristics Level

Corporate Level

Business Level

Operational Level

Time frame

Large range

Medium range

Short range

Cost

Major

Medium

Low

Type

Coceptual

Mixed

Operational

Selection Parameter

Value judgement

semi-quantified

Quantified

Frequency

Sporadic

sporadic or periodic

periodic

Adoptability

Low

Medium

High

relation to present activities

Innovative

Mixed

Supplemental

risks

High

Moderate

Low

profit potentials

Large

Medium

Small

10

flexibility

High

Medium

Low

11

cooperation required

Considerable

Moderate

OBJECTIVES AND STRATEGIES


Long term goals and philosophy
Long term objectives
Annual objectives
Functional objectives

ANNUAL BUSINESS PLANNING


Grand or corporate strategies form the basis for drawing up annual corporate
plans, they translate long term aspirations into annual budgets.

Quality of annual plans

1.

Clear linkage with the long term objectives

2.

Integrative and Co-ordinative objectives

Consistency in annual plans

1.

Measurable

2.

Priorities

FUNCTIONAL STRATEGIES
Functional strategies are the game plans for the functional areas within the
company.

1.Time horizon
2.Specific task
3.Participation

16. VARIABLE IN
COMPETITIVE
ENVIRONMENT

VALUE CHAIN:
What is value chain?
Value chain is a high level model of how business
receive raw material as input add values to the raw
material is through various process and sell finished
product to the customer.
Value chain is set of activities that a firm operating
in a specific industry performs in order to deliver a
product or services for the market.

FUNCTIONS OF VALUE CHAIN:

1.Research & devlopement


2.Design of products, service or processes
3. Production
4.Marketing & sales
5.Distribution
6.Customer service

CRITICAL SUCCESS VARIABLE


These key success variable can be identify out of the
following:
A. Product or service
B. Market or user class
C. Production capacity & capability
D. Technology
E. Marketing and sales methods
F. Logistics and distribution method
G. Exploitation of natural resources
H. Size & growth
I. Returns & profit

STRATEGY AND INDIVIDUAL MANAGER


Greater marketing/sales experience, greater
willingness to take risk, and greater tolerance for
ambiguity on the part of the strategic business
unit general manager contribute to build units.

Process of strategic planning

Implementing
Implementing strategy
strategy

Evaluating
Evaluating and
and selecting
selecting Overall
Overall
strategy
strategy
Generating
Generating strategic
strategic options
options
Developing
Developing vision,
vision, mission
mission and
and
corporate
objectives
corporate objectives
Analyzing
Analyzing internal
internal weaknesses
weaknesses
Scanning
Scanning environments
environments for
for
opportunities
and
threat
opportunities and threat

Thank you!

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