Strategic Management » Strategic levels of an organisation and formulatio » Strategic levels of an organisation
Strategic levels of an organisation and formulatio
Strategic levels of an organisation
Business policies are the guidelines developed by an organization to govern its actions.
They define the potential limits within which decisions must be made.
Business Policy is “the study of the functions and responsibilities of senior management, the crucial problems that affect success in the total enterprise and the decisions that determine the direction of the organization and shape its future.
Features of Business Policy
Every policy should be specific and clear.
Every policy must be uniform and reliable.
Policy must be unambiguous
Policy should be appropriate to the represent the organizational goals.
A policy should be simple and easily understood.
Policy should be flexible in operation.
Policy should be stable.
Three levels of strategy in an organization with examples
Corporate Level Strategy –
Corporate Strategy is stated in the mission statement, which explains the business type and ultimate goal of the organization.
Corporate strategy is concern with whole of organization.
It determines the growth objective of the company.
It defines how the firm will remain sustainable in the long run.
Corporate management consist CEO, Board of Directors, Top management etc.
Corporate strategy is long term strategy.
Nature of corporate level strategy is deterministic & legislative.
Business Level Strategy –
Business strategy is applicable in those organizations, which have different businesses-and each business is treated as Strategic Business Unit (SBU).
Business strategies are concerned with a particular unit or division or department.
Business Strategy is the strategy framed by the business managers to strengthen the overall performance of the enterprise.
Business level management consist middle, divisional or departmental managers.
Business strategy focuses on successful competition with competitors.
Business strategy is short term strategy.
Nature of business level strategy is governing and executive.
Functional Level Strategy –
Functional strategies are action oriented decisions which is made periodically and direct implemented.
Functional level management consist specific functional managers. I.e. sales manager, marketing manager etc.