List and
discuss the three levels of strategy that a large organization must
develop.
Answer:
a. Corporate strategy—this strategy seeks to
determine what businesses a company should be in or wants to be in. Corporate
strategy determines the direction that the organization is going and the roles
that each business unit in the organization will plan in pursuing that
direction.
b. Business strategy—this strategy seeks to
determine how an organization should compete in each of its businesses. For a
small organization in only one line of business or the large organization that
has not diversified into different products or markets, the business strategy
typically overlaps with the organization’s corporate strategy. For
organizations with multiple businesses, however, each division will have its
own strategy that defines the products or services it will offer and the
customers it wants to reach.
c. Functional strategy—this strategy seeks to
determine how to support the business strategy. For organizations that have
traditional functional departments such as manufacturing, marketing, human
resources, research and development, and finance, these strategies need to
support the business strategy.
Source: Management, 11e
(Robbins/Coulter)
