Levels of Strategy and Strategic Decisions

हाम्रो आग्रह !!

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Levels of Strategy

Strategy can be of three levels in an organization.

Ø Corporate Level Strategy:ü Concerned with broad decisions.
ü Useful to think three components of corporate level strategy:
v Growth or directional strategy
v Portfolio strategy
v Parenting strategy

Ø Business Level Strategy:
ü Involves deciding how the company will compete.
ü Focus on how to compete successfully.
ü Build and improve the company's competitive position.

Ø Functional Strategy:

ü Deals with how to be effective & maximize resource productivity.

Strategic Decisions

Ø Strategic decision is concerned with the selection of course of action to achieve the objectives.

Ø Such decision will be for long term future of the organization.

Ø Strategic decisions aim for competitive advantage.

Ø Such decisions will be unique and related with-

Ø Mission: The reasons for the existence of the organizations.

Ø Objectives: Desired outcomes of the organizations want to achieve.

Ø Strategies: Broad action plans to achieve the stated objectives.

Ø Policies: Guidelines for decision making in the organization.

Ø “Strategic decisions are normally about trying to achieve some advantage for the organization over competition and concerned with the scope of an organization’s activities.” –Johnson & Scholes

Ø “Strategic decisions encompass the definition of the business, products and markets to be served, functions to be performed and major policies needed for the organization to execute these decisions to achieve objectives.”– Jauch & Glueck