Levels of Strategy
By: Christina Miele, Rachel Passarelli, Jordan Bates,
Kyle Redmond and Dennis Park
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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
 Corporate level strategy is concerned with:
1.Reach
4.Management Practices
2.Competitive Contact
3.Managing Activities and Business interrelationships
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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 the customers.
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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 other strategies.
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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 business-level 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 aboveaverage returns for the firm.
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 technologies to retain the current
customer base and work towards reaching
new customers as well.
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.
•
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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
THE END