The document discusses different levels of strategy - corporate, business, and functional. At the corporate level, strategies define the overall direction and objectives of a company. Common corporate strategies include stability, growth, retrenchment, and combination strategies. Business level strategies determine how a company will compete in each business unit, such as through cost leadership, differentiation, or market focus. Functional level strategies improve effectiveness within departments like manufacturing, marketing, and human resources.

1. LEVEL OF
STRATEGY
By Varsha Kumari Singh
Rajiv Academy For Technology And
Management, Mathura

4. LEVEL OF
STRATEGY
CORPORATE
LEVEL
Stability
Strategy
Growth
Strategies
Retrenchment
Strategies
Combination
Strategies
FUNCTIONAL
LEVEL
BUSINESS
LEVEL
Cost
leadershi
p
Differentiati
on
Market
focus

5. CORPORATE LEVEL
•
Corporate strategy defines the markets and
businesses in which a company will operate.
Corporate strategy is formulated at the top
level by the top management of a diversified
company
It defines the long-term objectives and
generally affects all the business-units under
its umbrella.
Such a strategy describes the company’s
overall direction in terms of its various
businesses and product lines.

6. It is a “big picture” view of the organization
It is concerned with topics like
 What should be the growth objective of the
company and
 What strategy should it adopt to achieve
these objectives,
 What are various lines of business of the
company and
 How these businesses work in coordination
with each other

7. FourGrandStrategies
Stability Strategy
Growth Strategies
Retrenchment
Strategies
Combination
Strategies

8. 1. STABILITY STRATEGY
When a company finds that it should continue in the existing business
and is doing reasonably well in that business but no scope for
significant growth, the stability is the strategy to be adopted.
Reasons adopting Stability Strategies: Satisfactory level of
Profit from current operations, less risk, lack of
investment and managerial knowhow, executives-
inertia for change, small firms more focused on quality
and customer service.
EXAMPLE:-
Indian steel industry has not witnessed much traction in
recent time

9. 2. GROWTH OR EXPANSION STRATEGIES
 To increase profit, sales and/or market share.
 In the competitive environment, growth is considered as the
most common long-term goal of every enterprise in order to
sustain their existence.
 This also helps the enterprise to speed up the growth rate of
sales profits and market share by introducing new products,
entering new markets, utilizing new technologies and
developing effective managerial competencies.

10. EXPANSIONSTRATEGIES
Concentration
Strategies
Integration Strategies
Diversification
Strategies
Internationalization
Cooperation

11. GROWTH OR EXPANSION STRATEGIES MEANING EEEXAMPLE
a) Concentration Strategies Focusing on a primary line of
business and increasing the
number of products offered or
markets served.
Apple , Starbucks
b) Integration Strategies Combining activities related
to the present activities of a
firm, on the basis of the
value chain.
Raymond ,Vimal have extended
their activities from
manufacturing to setting up
exclusive retail
c) Diversification Strategies The company enter into
new lines of business from
existing line of business
*Walt Disney moved from producing
animated movies to theme parks and
vacation properties
* Reliance *Wipro *ITC
d) Internationalization Firms market their
products or services beyond
the domestic market
Spoonfed plans to expand
its operations globally in
pursuit of better sales
margin.

12. e) Cooperation Strategies
Types
MEANING EXAMPLE
i. Acquisition Strategy One firm to acquire
ownership or control over
another firm
Alphabet acquired more than
200 companies and 30
acquisitions were made in
2015 and 2016 alone.
ii. Merger Strategy Combines two firms
leaving one surviving
firm
A merger between Idea and
Vodafone in the Indian
telecommunication, P&G and
Gillette
iii. Joint Venture Partnerships in which two or
more firms carry out a specific
project or corporate in a
selected area of business.
Ownership of the firms
remains unchanged.
HCL-HP was a joint venture
between Hindustan Computers
Ltd , and Hewlett Packard
Computers. Similarly Maruti
with Suzuki Motors (Japan).

13. When a firms position is disappointing or, at the extreme, when its
survival is at stake then retrenchment strategies may be appropriate.
EXAMPLE :- Toshiba plans to exit the television and home appliance
business in India To cut back losses after failing to establish a strong
market position in the country.
Retrenchment strategies include:
 Turnaround Strategies, (DELL)
 Divestment Strategy,
 Liquidation Strategy, (Columbia Corporation )
3. RETRENCHMENT STRATEGIES

14.  This strategy is the combination of stability, growth and
retrenchment strategies.
 Combination strategies may involve implementation of two or
more strategies.
 This strategy is common for large scale organizations with
multiple units, diversified products and national or global
markets.
4. COMBINATION STRATEGY OR PORTFOLIO RESTRUCTURING

15. BUSINESS LEVEL
 A strategy that seeks to determine how an
organization should compete in each of its
SBUs (strategic business units).
 It is a business-unit level strategy,
formulated by the senior managers of the
unit. This strategy emphasizes the
strengthening of a company’s competitive
position of products or services.
 The business level strategies are formulated
to satisfy the needs of the customers of
different segments and also to provide value

16. 1. Cost leadership: Attaining, then using the lowest total cost
basis as a competitive advantage
EXAMPLES:- Walmart, Big Bazaar
2. Differentiation: Using product features or services to
distinguish the firm’s offerings from its competitors.
EXAMPLES:- Apple, L'Oréal
3. Market focus: Concentrating competitively on a specific
market segment.
EXAMPLES:- Karbon Mobile
BUSINESS LEVEL STRATEGIES

17. FUNCTIONAL LEVEL
 A functional strategy is, in reality, the
departmental /division strategy designed for
each organizational function
 Focus is on improving the effectiveness of
operations within a company.
 Which is done by:
 Manufacturing
 Marketing
 Materials management
 Research and development
 Human resources

18. .
 Thus, there may be production strategy, marketing strategy,
advertisement strategy, sales strategy, human resource strategy,
inventory strategy, financial strategy, training strategy, etc.
 A functional strategy refers to a strategy that emphasizes a
particular functional area of an organization. It is formulated to achieve
some objectives of a business unit by maximizing resource productivity.
 For example, a company following a low-cost
competitive strategy needs a production
strategy that emphasizes reducing the cost of
operations and also a human resource strategy
that emphasizes retaining the lowest possible
number of employees who are highly qualified to
work for the organization.