Different Levels of Strategy

Formulating Strategy

The process of developing or formulating effective strategies looks at the situation as presented by the information we have.  We then need to consider what the most effective strategies will be.

Levels of Organisational Strategy

Strategy for small organisations is a relatively simple matter as there is usually only one market/offer involved.  As organisations become larger and more diversified in their activities, we find that strategic development occurs at three different levels.

Corporate-level strategy

The corporate-level strategy is a set of action plans and corresponding corporate-level goals.  Corporate-level goals and action plans are expressed in terms of the firm’s collection of subsidiaries.

SBU-level strategy

Strategic Business Unit (SBU) strategy is the managerial action plan for directing and running a particular business unit.  SBU strategy deals with:

Functional-level strategy

In contrast with the other levels of strategy, functional strategies serve as guidelines for the managers of each of the organisations departments (e.g. Production, Finance, and Marketing).

Operational strategies (Tactics)

This refers to how executives within each department (e.g. Sales Managers, Brand managers; Advertising Managers) plan to implement the Functional Level strategy (Refer to Section 7 on Implementation)

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