SHR 247(6 for BB) - Business-Level Strategy Chapter 5...

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Business-Level Strategy Chapter 5
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Strategy Levels Corporate, Business and Functional Levels
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1 3 Levels of Strategy Operational strategy Business-level strategy Corporate- level
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Levels of Strategy Corporate strategy - of the organisation, structure how it is to be run in financial terms, how resources are to be allocated to the different units, diversification etc. Asks the question ‘in what markets should be compete in?’ Competitive or Business Strategy - how to compete in the market, what products or services should be developed and offered to which markets, long term profitability, meeting customer needs etc. Asks the question ‘how should we compete in the marketplace?’ Operational (Functional) Strategies - concerned with the different functions , marketing, finance, manufacturing, purchasing etc and contribute to the other levels of strategy.
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Corporate Level Strategy Concerned with the overall purpose and scope of and how value will be added to the different business units, and how resources are to be allocated between the different units. Examples: How new opportunities are to be exploited? Mergers/ acquisitions? How corporate culture is to be shaped? How resources are allocated? How the company is to be structured? How value is added to different units? How shareholder values are taken on board?
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Business Level Strategy Concerned with how to compete successfully in particular markets. Strategic decisions here are related to the Strategic Business Unit (SBU). E.g. how to achieve advantage over competitors What new opportunities can be identified or created in the industry? Which products or services should be developed? The extent to which these meet customer needs so as to achieve the organisational objectives
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Operational Level Strategy Concerned with how the component parts delivering effectively the corporate and business level strategies in terms of resources and processes E.g. how to set up production line so as to achieve production targets and marketing plans How to ensure consistency of output - for example through investing in superior technology or having rigorous quality procedures E.g. whether to have internal transport fleet to deliver goods to customer or contract service out to sub-contractors.
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Task Is your chosen company the corporate parent or a strategic business unit of a corporate parent? Can you break down the different levels of your company? Can you give an example for each level?
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Business-level strategy
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A business-level strategy is an action plan the firm develops to describe how it will compete in its chosen industry or market segment. How to compete in the marketplace
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This note was uploaded on 01/08/2012 for the course BUSINESS SHR 247 taught by Professor Willgeo. during the Fall '11 term at Syracuse.

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SHR 247(6 for BB) - Business-Level Strategy Chapter 5...

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