The Three Levels of Business Strategy :: three levels business strategy strategies formulated different · corporate · business unit · functional departmental strategy may competing surviving firm products developed units role corporation mange each competitive contributes purposes corporate fundamentally concerned selection businesses company should compete development coordination portfolio · reach defining issues responsibilities might include identifying overall goals types involved way Business Management Studies Essays The Three Levels of Business Strategy

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The Three Levels of Business Strategy

Strategies can be formulated on three different levels:

· Corporate level,
· Business unit level, and
· Functional or departmental level

Strategy may be about competing and surviving as a firm, products are
developed by business units. The role of the corporation is to mange
its business units and products so that each is competitive and so
that each contributes to corporate purposes.

Corporate Level Strategy

Corporate level strategy fundamentally is concerned with the selection
of businesses in which the company should compete and with the
development 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 integrated and managed.

· Competitive contact ? defining where the corporation competition is
to be localized.

· Managing activities and business interrelationships ? corporate
strategy seeks to develop synergies by sharing and coordinating staff
and other 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.

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