This document discusses different levels of strategy for a business. It defines corporate level strategy as actions taken to gain competitive advantage through selecting and managing a mix of businesses across industries. Business level strategy emphasizes competitiveness in a specific segment through generic strategies like cost leadership, differentiation, and focus. Functional level strategy develops goals and actions for departments to support the business and corporate strategies at a ground level. The document provides examples of stability, expansion, retrenchment, and combination strategies at the corporate level and discusses cost leadership, differentiation, and focus strategies at the business level.

1. VNS FACULTY OF
MANAGEMENT
S U B J E C T: B U S I N E S S P O L I C Y & S T R AT E G I C
A N A LYS I S
P R E S E N TAT I O N TO P I C : L E V E L S O F
S T R AT E G Y
SUBMITTED TO:
DR. ANCHAL DIXIT
SUBMITTED BY:
KIRTI MISHRA &
SANDEEP MISHRA

2. MEANING AND DEFINITION OF STRATEGY
• MEANING –
• Strategy is an action that managers take to attain one or more of the organization's
goals. Strategy can also be defined as “A general direction set for the company and its various
components to achieve a desired state in the future. Strategy results from the
detailed strategic planning process”.
• DEFINITION – ALFRED D CHANDLER, 1962
• Strategy can be defined as the determination of the long-term goals and objectives
an enterprise, and the adoption of courses of action and the allocation of resources
necessary for carrying out these goals.

5. LEVELS OF STRATEGY

6. CORPORATE LEVEL STRATEGY
A corporate-level strategy is an action taken to gain a competitive
advantage through the selection and management of a mix of
businesses competing in several industries or product markets.

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• Stability strategy: The stability strategy is when you proceed in working with clients in your
industry. This strategy also assumes that your company is doing well under this current business
model. Since the pathway to growth is uncertain, you should employ a stability strategy to
ensure incremental progress that still brings in revenue, which includes practices such as
research and development and product innovation. An example can be offering free trials of your
existing products to your target audience to increase its engagement.
• Expansion strategy: The expansion strategy is great for you if your company is planning on
creating new products and reaching new audiences. It can also be used if you're upgrading the
level of activity within your business like taking on new clients and hiring more employees. You
can apply this strategy if the region you're operating in has a strong economy or if your focus is
to enhance your performance.

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• Retrenchment strategy: A retrenchment strategy requires you to strongly consider switching
your business model. This may involve stopping the manufacturing of a product or reducing its
functionality. This strategy is only used when the company is looking to take protective
measures in keeping the solvency of the business. You should compile a SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis to see which marketing you can
successfully operate in.
• Combination strategy: A combination strategy is a hybrid of the previous three strategies to
create your business model. Its main purpose is to increase the company's performance and find
out which areas of your company can grow and retract based on market conditions. This
approach makes it easier for you to make adjustments to your strategy because you can be more
flexible with your time and how much should be allocated to each function of your strategy.

9. BUSINESS LEVEL STRATEGY
• These strategy are employed at business unit or product level and emphasizes the
competitiveness of the company’s product or service in the specific segment.
• A business level strategy is the strategy opted by a firm for each of its businesses separately to
serve the identified customer groups by providing value to these customers by satisfaction of
their needs. In the process, the manager craft competitive strategies for each business unit to
create, sustain and enhance competitive advantage using its competencies.

10. TYPES OF GENERIC BUSINESS
STRATEGIES
There are three types of generic business strategies :
• Cost Leadership Business Strategy
• Differentiation Business Strategy
• Focus Business Strategy

11. FUNCTIONAL LEVEL STRATEGY
• After the strategies have been developed at corporate and business level, strategies should be
formulated at functional unit level as well.
• For entire organization to move in the overall direction that has been pursued by the
formulation of corporate strategy with the aid of the business level strategy. The strategy should
be formulated at the functional levels as well to support the implementation of the overall
strategy at the ground level.
• Functional level strategies are the actions and goals assigned to various departments that
support your business level strategy and corporate level strategy. These strategies specify the
outcomes you want to see achieved from the daily operations of specific departments (or
functions) of your business.

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