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Strategic Management

TYBSc

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LEVELS of Strategy

Strategies exist at a number of levels in anorganisation. There are basically 4 levels:

!"#!"$TE%level strategy

B&S'(ESS%level strategy

)&(T'!($L strategy

!#E"$T'!($L strategy

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Levels of Strategy

!"#!"$TE level Strategy:

oncerne* +ith overall *irection an* sco,e of anorganisation

-o+ value +ill be a**e* to *ifferent business unitsof the organisation

This may inclu*e geogra,hical coverage *iversityof ,ro*ucts/services or business units

-o+ resources are to be allocate* bet+een*ifferent units

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or,orate -0 ,lays a crucial role in*etermining ho+ the org shoul* be structure*ho+ targets are set an* ,erformance revie+e*

1ays in +hich +e can a** value to se,aratebusiness units +ithin the com,any

Very concerne* +ith the ex,ectations ofo+ners the sharehol*ers an* the stoc2 mar2et

't forms the basis of other strategic *ecisions

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Levels

B&S'(ESS level Strategy:

an be thought as 3n* level strategy

-o+ to com,ete successfully in ,articularmar2ets

oncern is ho+ a*vantage over com,etitorscan be achieve*

1hat ne+ o,,ortunities can be i*entifie* orcreate* in mar2ets

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1hich ,ro*ucts or services shoul* be*evelo,e* in +hich mar2ets an* ho+ to meetcustomer nee*s so that the com,anys

ob5ectives are achieve*% e.g. Long%term,rofitability mar2et share gro+th etc

1hile cor,orate strategy involves *ecision ofthe 1-!LE organisation +hile business level

strategy *eals +ith *ecisions about SB&.

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Levels

)unctional strategies:

6etaile* action ,lans that are un*erta2en infunctional areas to achieve short%term

ob5ectives an* establish com,etitive a*vantage '*entify the s,ecific imme*iate actions that

must be un*erta2en in functional areas such aso,erations finance mar2eting -" etc toim,lement business strategy

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!#E"$T'!($L strategy:

4th level an* it is at the o,erating en* of anorganisation

oncerne* +ith ho+ the com,onent ,arts ofan organisation *eliver effectively thecor,orate an* business level strategies interms of resources ,rocesses an* ,eo,le.

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E.g. !f )unctional strategy:

#ro*uction resche*uling ,romotionalinitiatives ,ricing *istribution strategies etc.

Most organisations *e,en* on o,erationalstrategies to a large extent%i.e. The *ecisionsthat are ta2en here.

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7 8S9 )rame+or2

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7 8S9 )rame+or2 7S);

)rame+or2 basically *eals +ith organisationalchange

The 7S) suggests that there are several

factors that influence an organisations abilityto change

Variables involve* are interconnecte* so thataltering one element may +ell im,act otherconnecte* elements

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7S)

There is no starting ,oint or hierarchy in thesha,e of the *iagram

-ence not obvious +hich of the 7 factors

+oul* be the *riving force in changing a,articular organisation at a ,articular ,oint oftime

$ll the elements are e

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