Describe the Three Levels of Strategy for a Single-Business Company | sexygf.info
Answer to What is the relationship among corporate, business and functional level strategies and how do they create value to the o. Difference between 3 Levels of Strategy: Corporate, Business and Operational Levels! Strategy is all encompassing and function specific. Organizational. Corporate strategy and functional strategy exist at different levels within an organizational hierarchy. Corporate strategy refers to the business philosophy.
With your mission statement, you describe what your company does and how it differs from the competition. With your vision statement, you state how you want your company to be operating at a specific time in the future.
You will also want to create your corporate objectives at this level. Here, you should state targeted, high-level goals. Focus on specific financial, internal, customer and growth goals.
Describe the Three Levels of Strategy for a Single Business Company | Your Business
If you were starting a dog grooming company, you might create a specific per hour earnings goal. Because customer service and word of mouth are so crucial in that industry, you might also might set a measurable customer satisfaction goal.LEVELS OF STRATEGY IN HINDI - Corporate, Business & Functional Level - Strategic Management SM - ppt
On the internal side of things, you might decide that you want to be able to hire five employees within two years. The Business Unit Level Here you would define separate strategies for the various industries you operate in. Business owners who operate in many different niches must decide which to focus on most, and that may change over time.
At the business unit level, you may decide to make a graceful exit from an under-performing market. Or, you may even decide to sell off individual business units. If you operate only in one industry or niche, you might not find much to do here. That said, there is work you can do. What is it that makes your business special? How is your product or service superior? Now is the time to poke your head up and perform SWOT analysis: The strategies you define here should specify objectives that both support each business unit and the company as a whole.
For instance, the dog groomer may create a growth strategy that would allow him to branch out into grooming other animals or performing similar services.
It's important to note that in this scenario, the new business unit would be compatible with the original service. This keeps costs low and also ensures that the original business unit continues to perform well.
Difference between 3 Levels of Strategy
The Functional Level When you craft functional level strategy, you're concerned with smooth internal operation. This involves how departments operate and interact, and how they support your corporate level strategy day in and day out. Typically, your department heads would craft and carry out your functional level strategy. If you do have department heads, your functional-level strategy will help them keep things running smoothly.
So, your functional level strategy should provide ways of measuring progress. You, or your department heads, should be able to answer these questions at all times: How close are we to meeting our current objectives? What are the most important steps we can take right now to meet these objectives? In other words, while you will have objectives, projects and goals at every level of your organization, they should be particularly granular at the functional level.
You want to ensure that the goals at the functional level align with your goals at the corporate level. For instance, all departments in your organization should focus on creating a quality product, and all departments should be concerned with delivering stellar customer service. The difference is that at the functional level, your teams should be creating specific plans to achieve these goals.
Our dog groomer may have a department head, who focuses on booking new customers and another, who focuses on the day-to-day operations.
Both teams utilize specific strategies that enable them to excel, but both are also focused on growing the company as a whole. Perhaps the most important takeaway is that your strategy at all three levels should align.
The corporate level involves the entire organization. Business units include divisions, product lines or other centers of business activity within your organization.
Difference between 3 Levels of Strategy
The functional level refers to organizational departments such as human resources, marketing, operations and IT. Leadership One primary difference between corporate and functional strategies is the leadership involved. Corporate strategy involves executive or advisory boards and top management.
In a small business, it involves owners and top managers. These leaders collaborate periodically to review strategy and make necessary adjustments.
What Is the Difference Between Corporate Strategy & Functional Strategy?
Like business unit strategy, functional strategy should align with corporate strategy. It involves managers in each functional area who may also work with other functional leaders or with top management.
Objectives Since strategies are used to achieve objectives, another difference between corporate and functional strategies is the types of objectives they target. Common corporate objectives focus on bottom line results such as revenue, profits and customer satisfaction. Strategies include ways to make money, save money or improve the customer experience. Functional strategies typically align with more narrow functional objectives.