Friday, 18 January 2019

3 Levels of strategy in the business




In the world of business or at work, we might often hear the term "business strategy".  The business strategies by the company is use to facing the challenges of both business. To win the tough competition with competitors-its competitors. So, what exactly does it mean "strategy"?


Until the 20th century, the term Strategy is often use to indicate a comprehensive way to achieve political goals, including in addressing. The threat and use of force as well as the resources available. But today, the term STRATEGY is not only use on military and political affairs. But also widely use in economics and business world.

In the business world, the strategy can be define as the process of determining the direction and long-term goals of the Organization through the efforts of utilization and allocation of resources of the Organization effectively and efficiently. So that it can meet the needs of the market and stakeholders. Organization or companies that are successful and productive in general have a corporate strategy as his guide.

Each business unit within the organization also has a strategy use by the business unit leaders. To determine how they will compete in the market/markets respectively. Furthermore, each team or Department in the business unit also has its own his strategy. To ensure that the day-to-day can help drive the business units and the Organization in the right direction and in accordance with the expect.

Understanding Strategy according to experts


For more details about this strategy, please see some definition and understanding of the strategy according to the experts below:

  • The strategy is a series of fundamental decisions and actions made by the top management and implement by all levels of an organization in the achievement of the objectives of the Organization framework such.

  • A strategy is a plan that put together, and integrates the strategic advantages of linking companies with environmental challenges, design to ensure that the purpose the principal of the company can be achieve through the proper implementation by the organization.

  • Goal setting and strategy is a long term goal (targeting and long-term goals) a company and the direction of the action and the allocation of resources need. To achieve goals and objectives (achieve the goals and objectives).

  • The strategy is the process of determining the plan the leaders’ Summit that focus on the long-term goals of the Organization, accompanied by the preparation of a way or how in order that these objectives can be achieve.

3 levels of business strategy


In General, business strategy in a business enterprise can be divided into three main Levels, namely Corporate-level Strategy. The Business Unit at the level of Strategy (Business Level Strategy Unit) and Functional-level strategy. Corporate strategy focuses on determining which business must be carry on by the company.

Business strategy to develop a competitive edge in business segments while the Functional Strategy operates on the level of marketing, production and finance. To ensure that ensure that every work unit has a strategy to support the business of the company.

The following is a brief discussion about the third level of the strategy in question.

Corporate Strategy (Corporate Level Strategy)


The level of the first Strategy in the business world is a strategy at the level of the corporations or Corporate-Level Strategy, Corporate Strategy. To handle the entire scope of strategic companies especially in determining the goals and objectives of a company. This strategy is necessary to determine what business should be or want to be own by companies. Such as the type of product to be produce and where the product should be market. Corporate Level Strategy also determines the direction. That will be target by the company and the role of each of the business units within the company to achieve such direction.

There are two important things to be done at the corporate level strategy, namely:

Set the vision and mission of the company (Corporation)


The vision statement is a statement that describes the purpose and the conditions of the future. To be achieve by the company in the medium or long term. Vision or in the language of the United Kingdom called the Vision serves as a clear guide for selecting actions today and in the future.

The mission statement is a statement about what should be done by the company to realize that vision. The Mission of the United Kingdom or in a language called Mission gives direction and limitations the process of achievement of goals.

Determine the Objective or purpose of the companies


The company's objective or purpose of the specified Company is a tool that underlies all strategic planning and activities and serves as a basis for policy making and evaluating performance. The objective of the company among examples such as generating profits, minimize expenses or enlarging market share and others.

The Strategy of the Business Unit 


Strategy at Business Unit Level are the strategies used to achieve the goals of each business unit. Such as service, product business unit, Division or subsidiary. This strategy is executed by each business unit but must work together and support the corporate strategy. Which has been established by the parent company. Strategy at business unit Level is very important to do. Because it can see which superior business units and business units which need to be improved again.

Have a strategy in this Business Unit level allows companies to consider the costs and benefits of each business unit and decide the right position for allocating company resources can even be use. To decide when the time is to divest or sell business units that do not contribute positively. So that the top management of the company can focus on the most important business unit for the achievement of corporate strategy.
There are some things that must be done on the strategy at the level of this Business Unit are:


  1. Distinguish our company with competitors. One of the best ways to find out if the business unit we have been doing the best is to use a SWOT analysis. Of these SWOT analysis allows us to review the competition environment and determine the right strategy for our business units.

  2. Establish the Objective (goal) and actions that support the strategy at the level of the business units and corporate-level strategy. Our goal when creating a business unit's strategy is to establish objective or goals and initiatives. That support business unit while simultaneously contributing to the objective (goal) of the company as a whole.

Strategies of Functional (Functional-Level Strategy)


Functional-level strategy is a strategy that is formulate specifically in certain functional areas. To support the strategy of the business unit. This functional area includes the departments located in business units such as marketing, production, finance, human resources, IT and research and development. Functional strategies are usually generated and evaluate by the head of Department as head of marketing, head of finance, head of production and operation. These individuals can help ensure that the Department is running a defined strategic element. As well as ensure the components in functional-level strategy help support business unit or corporate-level strategy.

There are some things that should be consider in determining the functional level strategies, namely:

  1. Understand every detail of the project and the measurement.

  2. Make sure that the Strategy set out in this functional level should be align with the strategy. At the level of the business units and corporate-level strategy.

  3. Just need to measure the important data that determine achievement against targets and objectives.

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