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BPSM Assignment 1

The document discusses different levels of strategy management including corporate, business, and functional levels. It provides details on each level and explains that corporate level strategy is set by top management and relates to long term goals, while functional strategy is focused on individual business units and day to day tasks. The document also outlines the strategic management process.

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Miral patel
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87 views12 pages

BPSM Assignment 1

The document discusses different levels of strategy management including corporate, business, and functional levels. It provides details on each level and explains that corporate level strategy is set by top management and relates to long term goals, while functional strategy is focused on individual business units and day to day tasks. The document also outlines the strategic management process.

Uploaded by

Miral patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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LEVEL OF STRATEGY MANAGEMENT

SUBMITED BY:
MIRAL PATEL
(IU1955550054)
AGENDA
 WHAT IS STRATEGY

DEFINITION OF STRATEGY

FEATURES OF STRATEGY

LEVEL OF STRATEGY

 STRATEGIC MANAGEMENT PROCESS

. 
WHAT IS STRATEGY?

 Strategy is a tactical course of action which is designed to achieve long term


objectives. It is an art and science of planning and marshalling resources for .
their most efficient and effective use in a changing environment.

Strategy of a business enterprise consists of what management decides about


the future direction and scope of the business. It entails managerial choice
among alternative action programmers, competitive moves and different
business approaches to achieve enterprise objectives.

 Strategy once formulated has long term implications. It is framed by top


management in an organization. In short, it may be called as the ‘game plan of
management’.
DEFINITION OF STRATEGY

 As per Glueck,
Strategy is unified, comprehensive and integrated plan relating the
strategic advantages of the firm to the challenges of the environment
It is designed to ensure that the basic objectives of the enterprise are
achieved.

As per Alfred D. Chandler,


Strategy is “The determination of basic long-term goals and objectives
of an enterprise and the adoption of the courses of action and the
allocation of resources necessary for carrying out these goals.”
FEATURES OF STRATEGY

 Top management responsibility.

 Allocation of large amount of resources.

 Impact on long term prosperity of the firm .

Future oriented.

Multi-functional or multi-business consequences.

Consideration of factors in the external environment.


CORPORATE-LEVEL STRATEGY

At this level, strategic decisions relate to organization-wide policies and are taken
care by top-level management (BOD) with a vision of determining ‘Where the
company wants to be?’

 It has two main aspects- Formulation of Strategy (strategic planning) and Strategy
Implementation.

 The nature of strategy at this level tend to be value-oriented, conceptual and than
other levels.

 There is also greater risk, cost and profit potential as well as greater need of
flexibility associated with this level.

 Major financial policy decisions involving acquisition, diversification and structural


redesigning belong to this level.
BUSINESS-LEVEL STRATEGY

Business-level strategy is more likely related to a unit within the whole. It is


concerned with competition in a market.

The concerns are about what products or services should be developed and offered
to which markets in order to meet customer needs and organizational objectives.

At this level, multifunctional strategies developed at corporate level are formulated
and implemented for specific product market in which the business operates. Thus,
managers at this level translate general directions and intent into concrete
functional objectives.

 Decisions at this level include policies involving new product development,


marketing mix, research & development, personnel, etc.
FUNCTIONAL/OPERATIONAL-LEVEL STRATEGY

Functional strategy involves decision-making with respect to specific functional

areas- production, marketing, personnel, finance etc.

While corporate and business level strategies are concerned with “Doing the
right things”, functional strategies stress on “Doing things right”.

Operating level strategy is concerned with strategic approaches for managing


frontline operating units(like plants, sales, etc) and for handling day to day
tasks of strategic significance(like advertising campaign, purchasing materials,
inventory control, maintenance, etc.). Thus, it focuses on how the different
functions of the enterprise contribute to the other levels of strategy.

Thus, functional level strategic management is the management of relatively


narrow areas of activity, which are of vital, pervasive or continuing importance
to the total organization.
STRATEGIC MANAGEMENT PROCESS

STEP-1 STRATEGIC INTENT

 Vision- Vision is the statement that expresses organization’s ultimate long-


run objectives. E.g.- Microsoft- ’A computer software on every desk and in
every home’.

Mission- A Mission Statement defines the company’s business, its objectives


and its approach to reach those objectives. E.g.- Microsoft- ‘Empower every
person and every organization on the planet to achieve more’.

Objectives- Objectives state specifically how the goals shall be achieved.


Following are the areas for setting objectives- profit objective, marketing
objective, production objective, etc.
STEP-2 STRATEGY FORMULATION

Strategy formulation refers to the process of choosing the most appropriate


course of action for the realization of organizational goals and objectives.

1. Environmental Appraisal-
It is dynamic and consists of External & Internal Environment .

2. Organizational Appraisal-
It is the process of observing an organizational internal environment
to identify the strengths and weaknesses that may influence the organization's
ability to achieve goals.
STEP-3 STRATEGY IMPLEMENTATION

 Designing structure, process & system


 Functional Implementation
 Behavioral Implementation
 Operational zing strategy

STEP-4 STRATEGY EVALUTION & CONTROL

 Strategy evaluation-
It is the process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired performance.

 Strategic control-
In this step, organizations determine what to control i.e., which objectives the
organization hopes to accomplish, set control standards, & measure performance,

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