Reporting by Ms. Negradas

1. Strategy
- a plan of action or policy designed
to achieve a major or overall aim.

2.  Corporate strategy usually has a broader industry
focus including competitors and markets.
 Corporate strategy and functional strategy exist at
different levels within an organizational hierarchy.
Corporate strategy refers to the business
philosophy, direction and techniques used to guide
your entire organization toward its mission and
objectives. Functional strategy has a similar
purpose but at the functional level of an
organization.
What Is the Difference Between
Corporate Strategy & Functional
Strategy?

3. Covers the strategies scope
of the organization as a
whole. For the most
organization the corporate
strategies plan is the only
strategies plan
Corporate level strategies

4. In the first case the
organization may be
multidivisional in nature to the
extent that in principle or even
in law, separate parts of the
enterprise could operate as
viable entities in their own right.
Strategy Level

5. corporate level
business unit level
functional or departmental level.
Strategy can be formulated on three
different levels:

6. Corporate Level Strategy
Corporate level strategy
fundamentally is concerned with the
selection of businesses in which the
company should compete and with
the development and coordination of
that portfolio of businesses.

7.  Reach - defining the issues that are corporate responsibilities;
these might include identifying the overall goals of the
corporation, the types of businesses in which the corporation
should be involved, and the way in which businesses will be
integrated and managed.
 Competitive Contact - defining where in the corporation
competition is to be localized.
Corporate level strategy is concerned
with:

8.  Managing Activities and Business Interrelationships -
Corporate strategy seeks to develop synergies by sharing and
coordinating staff and other resources across business units,
investing financial resources across business units, and using
business units to complement other corporate business
activities.
 Management Practices - Corporations decide how business
units are to be governed: through direct corporate
intervention (centralization) or through more or less
autonomous government (decentralization) that relies on
persuasion and rewards.

10. Business Unit Level Strategy
A strategic business unit may be a
division, product line, or other
profit center that can be planned
independently from the other
business units of the firm.

11. Functional Level Strategy
 The functional level of the organization is the
level of the operating divisions and departments.
The strategic issues at the functional level are
related to business processes and the value
chain. Functional level strategies in marketing,
finance, operations, human resources, and R&D
involve the development and coordination of
resources through which business unit level
strategies can be executed efficiently and
effectively.

12. A value-creating strategy is one in which
the business seeks to edge out its
competitors by gaining more market
share. These strategies seek to add real
and perceived value to the business'
products and services by exploiting
economies of scope -- the resources and
capabilities of the business that can be
shared across the entire organization to
reduce costs and increase efficiency.
Value-Creating Strategy

13.  A business can employ a value-neutral
strategy when the organization isn't so much
concerned with allocating resources and
manpower as it is with securing its current
place within the market. In essence, value-
neutral strategy helps shore up the business'
operations plan. Initiating regulatory
oversight, creating synergy between
departments, working to reduce risk and
securing a steady cash flow are value-neutral
approaches
Value-Neutral Strategy

14.  Businesses also sometimes engage in value-
reducing strategies. This happens on an
organization-wide level when the
stakeholders or customers perceive that the
business is getting too big for its britches or
that only the top-level executives are
benefiting from diversification. In this case,
value-reducing strategy refocuses the
business' market, helps it define a target
demographic and puts mechanisms in place to
prevent unnecessary or harmful growth.
Value-Reducing Strategy

15.  While it sometimes is evident which
type of corporate level strategy an
organization should adopt, it is less clear
at other times, particularly when the
market is unsteady or the business
cannot afford to waste resources trying
new products and services that may not
be profitable. Asking yourself a few
strategy-level questions can help in the
decision:
Deciding on a Strategy