LEVELS OF STRATEGY

When an organization produced a single product, then its manager can make a single strategy plan that cover everything. But multinational or multi business companies such as UNI Liver and general electric are producing variety of products. Each business requires a separate strategy.

So keeping in view a multi business company’s level of strategies and where there levels are being adopt or are shown in following model.

CORPORATE LEVEL STRATEGY

The level of strategy that guides the organizations overall direction defined the business in which a company competes’ and specifies how resources are allocated.

Corporate level strategies are made by the top managers who are at the top inn hierarchy level and they are responsible for the overall success and failure of business. They make plans and policies about all business units keeping in view the organizations and specific environment of business unit after that transfer implementation to each respective business units.

BUSINESS LEVEL STRATEGIES

The level of strategy that determines how a company will compete in each of business unit? Strategic business unit mean a separate business with its own set of managers, products, resources, customer, and competitors that is managed independences from the company’s other organizational units.

Each SUB has an ability to decide how to approach its own markets. Where to obtain its suppliers, how to make other key decision and the top managers of each SUB develop business level strategy for that SUB.

FUNCTIONAL LEVEL STRATEGY

The level of strategy that determines how activities of each of the organization’s functional areas will support business level strategy. Functional areas level strategy supports business level strategy by specifying activities in each of the functional areas within an organization, such as marketing, personnel, and finance.

The period of functional level strategy is normally one year and made by the middle managers or head of department. Functional level strategies support business level strategies and ultimately BLS support corporate level strategy which leads to achieve the main mission of multi business companies.