Levels of Strategy
The corporate level strategies are concerned with the entire scope of strategy of the business. These strategies include decision on which service of product to compete and in which regions of geography to operate. The corporate strategy addresses the question of how being in certain businesses enhance synergy or add advantage to the corporation as a whole. On the other hand, business strategies refer to the strategies that are aggregated of a single organization or SBU in a corporation that is diversified.
A business strategy should be able to incorporate success that is long term and competitive advantage. Functional strategies emphasis on medium and short term plans and is limited to functional responsibility of each department domain. They include strategies on human resource, new development of product, financial and management of information technology. (Thomas, 2011).
The relationship among these strategies is that they facilitate the success of an organization by ensuring that an organization performs better than its competitors. Corporate strategies deal with the process of resource allocation and the definition of the market also falls in this level. Business strategies deal with navigation of the market ie it tries to secure advantage that is competitive in the product that is in existence or markets in the geography. The purpose of the functional strategies is to support both corporate and business strategies.
It involves systems of information, practices of human resource and processes of production that facilitate the success of both corporate and business strategies. These three strategies create value for a firm by helping it to compete and survive. They help a firm to manage units of businesses and products and this leads them to be competitive and this contributes to the purposes of the corporate. These strategies also help organizations in creating value through better management of their business portfolios and ensuring that over the long term, the businesses are successful. (Thomas, 2011).
References
Levels of strategy hierarchy. (2010). Retrieved from http://www.quickmba.com/strategy/levels/ on 17-5-2011
Thomas J. (2011): Levels of strategy. Retrieved from http://www.referenceforbusiness.com/management/Sc-Str/Strategy-Levels.html on 17-5-2011.
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