Question
Which of the following strategy is made by the senior
most management in large corporates?Solution
Strategy is at the foundation of every decision that has to be made within an organization. · Corporate Strategy - It is about selecting an optimal set of businesses and determining how they should be integrated into a corporate whole. Typically, major investment and divestment decisions are made at this level by top management. · Business level strategy or competitive strategy - business-level strategy is aimed at gaining a competitive advantage by offering true value for customers while being a unique and hard-to-imitate player within the competitive landscape. These are also done at top level but below corporate strategy. · Functional strategy - These strategies are often aimed at improving the effectiveness of a company’s operations within departments. Within these department, workers often refer to their ‘Marketing Strategy’, ‘Human Resource Strategy’, etc. · Operational strategy - It gives form to the operating units of an organization. An operating strategy is put across at the field level, usually to achieve on-hand objectives.
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