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{{DISPLAYTITLE: Levels of Strategy}}
== Levels of Strategy ==
Good strategy is about the practicalities of managing as well as the analysis of strategizing. Inside an organization, strategies can exist on three main levels:
#'''Corporate-level Strategy''' is concerned with the overall scope of an organization and how value is added to the constituent businesses of the organizational whole. Corporate-level strategy issues include geographical scope, diversity of products and services, acquisitions of new businesses, and how resources are allocated between the different elements of the organization. For example, for a news magazine, diversifying from the original magazine into retail, publishing and video are corporate-level strategies. Being clear about corporate-level strategy is important; determining the range of businesses to include is the basis of other strategic decisions, such as acquisitions and alliances.
#'''Business-level Strategy''' is about how the individual businesses should compete in their particular markets (for this reason, business-level strategy is often called “competitive strategy”). These individual businesses might be standalone businesses, for instance entrepreneurial start-ups, or business units within a larger corporation. Business-level strategy typically concerns issues such as innovation, appropriate scale and response to competitors’ moves. In the public sector, the equivalent of business-level strategy is decisions about how units (such as individual hospitals or schools) should provide best-value services. Where the businesses are units within a larger organization, business-level strategies should clearly fit with corporate-level strategy.
#'''Operational Strategies''' are concerned with how the components of an organization deliver effectively the corporate- and business-level strategies in terms of resources, processes and people. For example, a magazine company who has to keep raising external finance to fund its rapid growth; its operational strategy is partly geared to meeting investment needs. In most businesses, successful business strategies depend to a large extent on decisions that are taken, or activities that occur, at the operational level. Operational decisions need therefore to be closely linked to business-level strategy. They are vital to successful strategy implementation.

This need to link the corporate, business and operational levels underlines the importance of integration in strategy. Each level needs to be aligned with the others. The demands of integrating levels define an important characteristic of strategy; strategy is typically complex, requiring careful and sensitive management. Strategy is rarely simple.

[[Category: Strategy]]

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Admin: Created page with "{{DISPLAYTITLE: Levels of Strategy}} == Levels of Strategy == Good strategy is about the practicalities of managing as well as the analysis of strategizing. Inside an organiza..."