Thursday 8 February 2018

levels of strategic management

levels of strategic management involves the creation and implementation of large goals and initiatives taken by the top management. The company on the basis of the consideration of resources and internal and external environment evaluation taking part in the organization.
levels of strategic management




In a management strategy, the company in General has three (3) levels of strategy:


  1. Strategy of the Corporation


Corporate strategy is a strategy that is structure in a business. Where the company will compete with how to change a distinctive competence be a competitive advantage. The problem which is quite critical of this strategy is to determine the conduct of what the will be develop. What business that want to be defend and what businesses want is release.

Corporate level strategy defines the business areas in which your firm will operate. It deals with aligning the resource deployments across a diverse set of business areas relate or unrelated. Strategy formulation at this level involves integrating and managing the diverse businesses and realizing synergy at the corporate level.


  1. Business Strategy


The company that produces a variety of types of products will compete at various levels of business or the market. With such business strategy can be emphasize on Strategic Business Units (SBU). In principle the Strategic Business Units (SBU) have the characteristics as follows, namely: produce mission and strategy, generate a product or services that are associate with the mission and strategy, produce the product or service in specific, compete with competitors who it has been known clearly. Strategy on business generally emphasizes on increasing the margin of profit from products and sales, and should integrate various activities functions, so that the goal of the level Division It can be achieve.

he business level strategy formulation is base upon the generic strategies of overall cost leadership, differentiation, and focus. For example, your firm may choose overall cost leadership as a strategy to be pursue in its steel business, differentiation in its tea business, and focus in its automobile business.


  1. Functional Strategies


Functional strategy is more operational in nature because it directly implement by functions of management that there are under the responsibility and he said, as a function of production management / operations, functions of management marketing, financial management functions, management functions resources human resources.
Example:

The marketing strategy for a tea business which is following the differentiation strategy may translate into launching and selling a wide variety of tea variants through company-own retail outlets.

This may result in the distribution objective of opening 25 retail outlets in a city.

Producing 15 varieties of tea may be the objective for the production department. The realization of the functional strategies in the form of quantifiable and measurable objectives will result in the achievement of business level strategies as well.

Strategic management is the art and science of preparation, implementation, and evaluating cross-functional decisions. That can allow accompany goal find out. Actually the strategic management is the process of goal-setting Organization.

Conclusion on levels of strategic management


The development policy and planning in order to achieve objectives to reach the target. Even and allocating resources to apply policies and plan organizational goal achievement. Strategic management combines activities from various functional parts of a business to achieve the objectives of the organization.

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