232x Filetype PPTX File size 0.77 MB Source: hahuzone.com
Chapter objective – At the end of the chapter students able to know types of strategies – You will understand guidelines for pursuing strategies –Michael Porter’s generic strategies Three Levels of Strategy in Organizations Strategy hierarchy 1. Corporate strategy: 1) growth strategy, 2) stability strategy, 3) retrenchment strategy. 2. Business unit strategy: 1) cost leadership, 2) differentiation, 3) focus, 4) mixed. 3. Functional strategy. 4 Cont…. 1.Corporate-level strategy: The level of strategy concerned with the question “What business are we in?” • Pertains to the organization as a whole and the combination of business units and product lines that make it up. 2. Business-Level Strategy: The level of strategy concerned with the question “How do we compete?” 3. Functional-Level Strategy: The level of strategy concerned with the question “How do we support the business-level strategy?” • It pertains to the major functional departments within the business unit. Corporate Strategy • Corporate strategy defines what business or businesses the firm is in or should be in, how each business should be conducted, and how it relates to society. • This strategy is for the company and all of its business as a whole. • Corporate strategies are established at the highest levels in the organization; they generally involve a long-range time horizon and focus on the entire organization. • Such issues involve the basic character, capability and competence of the firm; the direction in which it should develop its activity; the nature of its internal architecture; governors and structure; the nature of its relationships with its sector, its competitors and the wider environment. • Corporate strategies usually fit within the three main categories of stability, growth and retrenchment
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