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Strategic Management: Corporate Strategy
At the corporate level, you are responsible for creating value through
your businesses. You do so by managing your portfolio of
businesses, ensuring that your businesses are successful
over the long erm, developing business units, and sometimes
ensuring that each business is compatible with others in
your portfolio.
Products and services are developed by business units. The role of the
corporation is to manage its business units, products and
services so that each is competitive and so that each
contributes to corporate purposes.
1.Corporate
Strategy fundamentally is concerned with selection of
businesses in which your company should compete and with
development and coordination of that portfolio of
businesses. Corporate level strategy is concerned with
reach; enterprise-wide business process management;
competitive contact; managing activities and business
interrelationships; and management practices
2.Business
Strategy includes battle plans, tactics used to fight
the competition in the industry that your company currently
participates in. A strategic business unit may be any profit
center that can be planned independently from the other
business units of your corporation. At the business unit
level, the strategic issues are about both practical
coordination of operating units and about developing and
sustaining a competitive advantage for the products and
services that are produced. The business strategy
formulation and implementation deals with positioning and
differentiating the business and/or products against rivals;
business-level cross-functional process management;
anticipating changes in technology and customer perceptions
and adjusting the strategy to accommodate them; influencing
the nature of competition through strategic and political
actions; and building strategic partnerships and
co-innovating with other business units, partners, and
customers.
3.Functional
Strategy deals with operational methods related to
functional business processes and value chain, and value
adding activities that you choose for your business. The
functional level of your organization is the level of the
operating divisions and departments. Functional level
strategies in R&D, operations, manufacturing, marketing,
finance, and human resources involve the development and
coordination of resources through which business unit level
strategies can be executed effectively and efficiently.
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