Levels of Strategy By Christina Miele Rachel Passarelli

Levels of Strategy By: Christina Miele, Rachel Passarelli, Jordan Bates, Kyle Redmond and Dennis Park

TAKE OUT YOUR BINGO CARDS!!!! Question #1: What does the term “Strategy” mean? A. The act of making definite, distinct, or clear. B. The purchase and sale of goods in an attempt to make a profit. C. A plan or method for obtaining a specific goal or result. D. Both B and C

The 3 Levels of Strategy: 1. Corporate Level Strategy 2. Business-Unit Level Strategy 3. Functional Level Strategy

Corporate Level Strategy �Highest level of decision making �Deals with the overall objective of the firm �Forms the trunk of the strategic decision tree �Market you should compete in �Less concrete 1. Reach 4. Management � Corporate level strategy is concerned Practices with: 2. Competitive Contact 3. Managing Activities and Business

TAKE OUT YOUR BINGO CARDS!!!!! Question #2 What are the 4 main parts Corporate level strategy is concerned with? (mentioned in previous slide) E. Reach, Management practice, business unit and competitive contract F. Reach, Management practice, business unit and manage activities and business interrelationship G. Reach, Management practice, competitive contract, manage activities and business interrelationship H. Corporate level, business level and functional level.

Business-Unit Level �Second level of the pyramid. �Businesses levels strategies are to secure businesses (themselves) an identity and position in the market. �Business level goals are: → Increase the business value for the corporate and stakeholders. → Increase the brand awareness and value perceived by

TAKE OUT YOUR Bingo CARDS!!! Question #3 What are the 2 business level goals? I. Increase the business value for the corporate and stakeholders J. Increase the brand awareness and value perceived by the customers. K. None of the above L. Both I & J

Functional level • This is the third (bottom level) and final level of the pyramid. • Also known as “Operational Level” • Level of the operating divisions and departments. • Primarily concerned with successfully implementing the strategic decisions made at pervious levels. • This level of strategy is extremely significant in shaping the success of

TAKE OUT YOUR BINGO CARDS!!! Question #4 Why is this level extremely significant? M. This level is not extremely significant N. Because it is the final level of the pyramid O. Because it shapes the success of the others strategies P. Both N&O

Advantages & Disadvantages A firm that successfully implements all 3 businesslevel strategies should be in a better position to: • Adapt quickly to any new environmental changes • Learn new skills and technologies more quickly • Effectively leverage its core competencies while competing against its rivals Successfully implementing the strategies will also lead to above-average returns for Business-level strategies require the organization to always remain vigilant regarding the needs of customers and the potential encroachment of competition. Today’s highly competitive market can often fail companies to do so and lead them to: • Lose sight in changing customers’ tastes. • Be easily imitated by rival competition • Frequently reduce/raise pricing on products In order to avoid these disadvantages, a business should always remain up-to-date with new

Interconnection All strategies have to be in complete harmonization with each other since the success of one level is inseparably linked to the other. • The impact of the node on the others is judged by the flexibility of their relationship which further depends upon the success of the adopted business framework. •

TAKE OUT YOUR BINGO CARDS!!! Question #5 All strategies have to be in complete harmonization with each other because… Q. They do not have to be harmonized R. the success of one level is inseparably linked to the other. S. None of the above T. Both Q&R

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