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Homework:
Deals that
actually
realized??
LEVELS OF STRATEGIES
Corporate Strategy: Overall
organizational direction.
Business Strategy: Positioning
business units for competitive
market advantage.
Functional Strategy:
Departmental action plans.
Operational Strategy: Day-to-
day tasks.
DIFFERENCES AND
DEFINITIONS OF ALL OF
THEM
• Corporate Strategy: Focuses on which industries or markets a company should
compete in, guiding resource allocation across business units.
• Business Strategy: Concentrates on how a company competes within a
particular market, differentiating itself from competitors through competitive
advantages.
• Functional Strategy: Addresses how specific functions (e.g., marketing,
operations) support the business strategy, optimizing specific resources and
capabilities.
• Operational Strategy: Details daily activities, processes, and tactics to
implement higher-level strategies, emphasizing efficiency and effectiveness at
the task level.
ROLES
• Corporate Level:
• In which businesses to operate
• Business Level:
• How to compete
• Functional Level:
• Optimal performance of specific departments or functions.
• Operational Level:
• Day-to-day execution, processes, and tasks for efficiency/ Mostly tactical in nature/ First
touchpoints
Strategies help in the
best utilization of the resources,
the fulfilment of objectives
From general to specific. From vague to
detailed.
They have two way influence on each
other
For instance, if a corporate
strategy targets sustainable
products, the business strategy
might prioritize eco-friendly
offerings, influencing principal
goals.
Maximum impact to the minimum impact
Corporate strategy defines the
company's overall direction, like
entering e-commerce.
Operational strategy, while
executing this, focuses on daily
tasks, like website maintenance,
having less broad-scale influence.
Formulated for the longest to shortest duration of
time,
for long-term objectives to short-term objectives
Corporate Strategy:Tata Group's vision of entering
the electric vehicle market for sustainable
transportation.
Business Strategy: Reliance Jio's aggressive pricing to
capture telecom market share.
Functional Strategy: Infosys investing in continuous
training programs to enhance employee skills.
Operational Strategy: Swiggy's daily optimization of
delivery routes for quicker food delivery.
Resources involved maximum to a
minimum.
Corporate Strategy: Tata Group diversifying into aviation
with Vistara, allocating massive capital and brand
reputation.
Business Strategy: Tata Motors focuses on electric
vehicles, directing specific investments and technology.
Functional Strategy: Tata Steel's marketing team
promotes eco-friendly initiatives, utilizing campaign
budgets.
Operational Strategy: A single Tata Cliq store managing
its daily inventory, using limited in-store resources.
In a smaller organization, a single person may
formulate and implement all types of strategies.
In a local bakery, the owner might
decide the bakery's direction
(corporate),
choose specialty breads (business),
manage marketing efforts
(functional),
and oversee daily bread production
(operational), all while playing each
strategic role themselves.
Responsibility
• Corporate Level:
• Corporate level management, Formulated by top-level management.
Board of Directors, CEO, and Senior ExecutiveTeam.
• For the whole corporation.
• Business Level:
• Business-level general managers, in a business within a total
corporation. Business Unit Heads or Strategic Business Unit (SBU)
Managers.
• For each strategic business unit.
• Functional Level:
• Heads of major functional units within a business unit
• Marketing Director, Head of HR, Finance Director
• Operational Level:
• Front-line Managers,Team Leaders, and Supervisors.
Examples (Which strategy belongs to
which level)Write in notebook 1,2,3,4
• Alphabet:Ventured into healthcare with projects likeVerily and Calico.
• Google's London recruitment: Initiated a month-long university-
focused hiring drive.
• Waymo: Partnered with auto manufacturers for its autonomous
driving tech.
• Google HR: Promotes innovation through "innovation days," allowing
free project choice for employees.
• Jio: Offered free 4G services temporarily to massively boost its
subscriber base.
• Reliance Industries: Pivoted to digital by heavily investing in its Jio
platform.
Examples
• Corporate Level:
• Alphabet:Ventured into healthcare with projects likeVerily and Calico.
• Reliance Industries: Pivoted to digital by heavily investing in its Jio platform.
• Business Level:
• Waymo: Partnered with auto manufacturers for its autonomous driving tech.
• Jio: Offered free 4G services temporarily to massively boost its subscriber base.
• Functional Level:
• Google HR: Promotes innovation through "innovation days," allowing free project choice
for employees.
• Operational Level:
• Google's London recruitment: Initiated a month-long university-focused hiring drive.
CORPORATE LEVEL
• Grand:
• Amazon: Evolving from an online bookstore to an e-commerce giant, and expanding into services like
AWS, streaming, and logistics.
• Stability:
• Coca-Cola: Continuously focusing on its core product, the classic Coke, while making minor adjustments
to meet market needs.
• Expansion:
• Spotify: Starting in Europe and then rapidly expanding its streaming services worldwide.
• Retrenchment:
• Sony: Selling off itsVAIO laptop division to refocus on its more profitable segments.
• Diversification:
• Virgin Group: Starting with music records and diversifying into airlines, trains, telecom, and even space
travel.
• Diversification activity
• Divestment:
• General Electric: Selling its appliance business to Haier.
BUSINESS LEVEL
• Cost leadership:
• Walmart: Using scale and operational efficiency to offer low prices.
• Differentiation:
• Tesla: Offering electric cars with unique features, design, and performance.
• Focused strategy:
• Ferrari:Targeting the luxury sports car niche with high-performance vehicles.
FUNCTIONAL LEVEL
• HR strategy:
• Johnson & Johnson's "Energy for Performance" program which not only focuses on the physical
well-being of its employees but also their emotional, mental, and spiritual health.
• Marketing strategy:
• Red Bull: Positioning itself around extreme sports and adrenaline-pumping events.
• Finance strategy:
• Starbucks: Utilizing futures contracts to hedge against fluctuating coffee prices.
OPERATIONAL LEVEL
• Toyota's production system uses JIT to reduce costs associated with excess
inventory.
• Boeing's use of lean principles to streamline its aircraft manufacturing processes,
improving efficiency and reducing waste.
Generally the textbooks and study materials
covers only the top three levels of the
strategies
Suggest three more
levels as per your
understanding
Global Strategy emphasizes positioning
companies in international markets,
considering cultural, economic, and
regulatory differences.
It provides a framework for challenges like
localization, branding, and global supply
chains.
THANKYOU

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3. Strategic management levels.pptx

  • 3. Corporate Strategy: Overall organizational direction. Business Strategy: Positioning business units for competitive market advantage. Functional Strategy: Departmental action plans. Operational Strategy: Day-to- day tasks.
  • 5. • Corporate Strategy: Focuses on which industries or markets a company should compete in, guiding resource allocation across business units. • Business Strategy: Concentrates on how a company competes within a particular market, differentiating itself from competitors through competitive advantages. • Functional Strategy: Addresses how specific functions (e.g., marketing, operations) support the business strategy, optimizing specific resources and capabilities. • Operational Strategy: Details daily activities, processes, and tactics to implement higher-level strategies, emphasizing efficiency and effectiveness at the task level.
  • 6. ROLES • Corporate Level: • In which businesses to operate • Business Level: • How to compete • Functional Level: • Optimal performance of specific departments or functions. • Operational Level: • Day-to-day execution, processes, and tasks for efficiency/ Mostly tactical in nature/ First touchpoints
  • 7. Strategies help in the best utilization of the resources, the fulfilment of objectives
  • 8. From general to specific. From vague to detailed.
  • 9. They have two way influence on each other For instance, if a corporate strategy targets sustainable products, the business strategy might prioritize eco-friendly offerings, influencing principal goals.
  • 10. Maximum impact to the minimum impact Corporate strategy defines the company's overall direction, like entering e-commerce. Operational strategy, while executing this, focuses on daily tasks, like website maintenance, having less broad-scale influence.
  • 11. Formulated for the longest to shortest duration of time, for long-term objectives to short-term objectives Corporate Strategy:Tata Group's vision of entering the electric vehicle market for sustainable transportation. Business Strategy: Reliance Jio's aggressive pricing to capture telecom market share. Functional Strategy: Infosys investing in continuous training programs to enhance employee skills. Operational Strategy: Swiggy's daily optimization of delivery routes for quicker food delivery.
  • 12. Resources involved maximum to a minimum. Corporate Strategy: Tata Group diversifying into aviation with Vistara, allocating massive capital and brand reputation. Business Strategy: Tata Motors focuses on electric vehicles, directing specific investments and technology. Functional Strategy: Tata Steel's marketing team promotes eco-friendly initiatives, utilizing campaign budgets. Operational Strategy: A single Tata Cliq store managing its daily inventory, using limited in-store resources.
  • 13.
  • 14. In a smaller organization, a single person may formulate and implement all types of strategies. In a local bakery, the owner might decide the bakery's direction (corporate), choose specialty breads (business), manage marketing efforts (functional), and oversee daily bread production (operational), all while playing each strategic role themselves.
  • 15. Responsibility • Corporate Level: • Corporate level management, Formulated by top-level management. Board of Directors, CEO, and Senior ExecutiveTeam. • For the whole corporation. • Business Level: • Business-level general managers, in a business within a total corporation. Business Unit Heads or Strategic Business Unit (SBU) Managers. • For each strategic business unit. • Functional Level: • Heads of major functional units within a business unit • Marketing Director, Head of HR, Finance Director • Operational Level: • Front-line Managers,Team Leaders, and Supervisors.
  • 16. Examples (Which strategy belongs to which level)Write in notebook 1,2,3,4 • Alphabet:Ventured into healthcare with projects likeVerily and Calico. • Google's London recruitment: Initiated a month-long university- focused hiring drive. • Waymo: Partnered with auto manufacturers for its autonomous driving tech. • Google HR: Promotes innovation through "innovation days," allowing free project choice for employees. • Jio: Offered free 4G services temporarily to massively boost its subscriber base. • Reliance Industries: Pivoted to digital by heavily investing in its Jio platform.
  • 17. Examples • Corporate Level: • Alphabet:Ventured into healthcare with projects likeVerily and Calico. • Reliance Industries: Pivoted to digital by heavily investing in its Jio platform. • Business Level: • Waymo: Partnered with auto manufacturers for its autonomous driving tech. • Jio: Offered free 4G services temporarily to massively boost its subscriber base. • Functional Level: • Google HR: Promotes innovation through "innovation days," allowing free project choice for employees. • Operational Level: • Google's London recruitment: Initiated a month-long university-focused hiring drive.
  • 18. CORPORATE LEVEL • Grand: • Amazon: Evolving from an online bookstore to an e-commerce giant, and expanding into services like AWS, streaming, and logistics. • Stability: • Coca-Cola: Continuously focusing on its core product, the classic Coke, while making minor adjustments to meet market needs. • Expansion: • Spotify: Starting in Europe and then rapidly expanding its streaming services worldwide. • Retrenchment: • Sony: Selling off itsVAIO laptop division to refocus on its more profitable segments. • Diversification: • Virgin Group: Starting with music records and diversifying into airlines, trains, telecom, and even space travel. • Diversification activity • Divestment: • General Electric: Selling its appliance business to Haier.
  • 19. BUSINESS LEVEL • Cost leadership: • Walmart: Using scale and operational efficiency to offer low prices. • Differentiation: • Tesla: Offering electric cars with unique features, design, and performance. • Focused strategy: • Ferrari:Targeting the luxury sports car niche with high-performance vehicles.
  • 20. FUNCTIONAL LEVEL • HR strategy: • Johnson & Johnson's "Energy for Performance" program which not only focuses on the physical well-being of its employees but also their emotional, mental, and spiritual health. • Marketing strategy: • Red Bull: Positioning itself around extreme sports and adrenaline-pumping events. • Finance strategy: • Starbucks: Utilizing futures contracts to hedge against fluctuating coffee prices.
  • 21. OPERATIONAL LEVEL • Toyota's production system uses JIT to reduce costs associated with excess inventory. • Boeing's use of lean principles to streamline its aircraft manufacturing processes, improving efficiency and reducing waste.
  • 22. Generally the textbooks and study materials covers only the top three levels of the strategies Suggest three more levels as per your understanding
  • 23. Global Strategy emphasizes positioning companies in international markets, considering cultural, economic, and regulatory differences. It provides a framework for challenges like localization, branding, and global supply chains.