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  • Types of Strategies in Strategic Management

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    sejal Saste
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    There are three main types of strategies in strategic management: corporate strategy, business strategy, and functional strategy. Corporate strategy focuses on the overall growth and direction of the entire organization. It involves visioning, objective setting, allocating resources, and strategic trade-offs. Business strategy concerns how a firm will compete in specific product markets. Functional strategy refers to the approaches for individual business functions like production, marketing, and human resources that support the competitive strategy.

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    There are three main types of strategies in strategic management: corporate strategy, business strategy, and functional strategy. Corporate strategy focuses on the overall growth and direction of the entire organization. It involves visioning, objective setting, allocating resources, and strategic trade-offs. Business strategy concerns how a firm will compete in specific product markets. Functional strategy refers to the approaches for individual business functions like production, marketing, and human resources that support the competitive strategy.

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    135 views5 pages

    Types of Strategies in Strategic Management

    Uploaded by

    sejal Saste
    There are three main types of strategies in strategic management: corporate strategy, business strategy, and functional strategy. Corporate strategy focuses on the overall growth and direction of the entire organization. It involves visioning, objective setting, allocating resources, and strategic trade-offs. Business strategy concerns how a firm will compete in specific product markets. Functional strategy refers to the approaches for individual business functions like production, marketing, and human resources that support the competitive strategy.

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    TYPES OF STRATEGIES IN

    STRATEGIC MANAGEMENT:

    -Swara Apradh
    TY BBA, DIV-A, Roll no.01
    The types of strategies in strategic management are:
    •Corporate Strategy
    •Business Strategy
    •Functional Strategy
    Corporate strategy is arguably the most essential and broad ranging strategy
    level within organizational strategy. The corporate strategy level concerns itself
    with the entirety of the organization on a more or less abstract level, where
    decisions are made with regard to the overall growth and direction of a
    company.   In more concrete terms,
    The main components of corporate strategy are:
    1. Visioning
    2.Objective Setting
    3.Allocation of Resources
    4.Strategic Trade-offs (Prioritization)

    Visioning involves setting the high-level direction of the organization - namely


    the vision, mission and potentially corporate values.
    Objective Setting involves developing the visioning aspects created and turning
    them into a series of high level (sometimes still rather abstract) objectives for the
    company, typically spanning 3-5 years in length.
    Allocation of resources refers to decisions which concern the most efficient
    allocation of human and capital resources in the context of stated goals and aims. 
    Strategic trade-offs are at the core of corporate strategy planning. It's not always
    possible to take advantage of all feasible opportunities. In addition, business
    decisions almost always entail a degree of risk. Corporate level decisions need to
    take these factors into account in arriving at the optimal strategic mix.
    Business-level strategy is an integrated and coordinated set of commitments and
    actions the firm uses to gain a competitive advantage by exploiting core
    competencies in specific product markets. It indicates the choices the firm has
    made about how it intends to compete in individual product markets. Namely, the
    choices are important because long-term performance is linked to a firm’s
    strategies. Given the complexity of successfully competing in the global
    economy, the choices about how the firm will compete can be difficult.
    Moreover, the purpose of a business-level strategy is to create differences
    between the firm’s position and those of its competitors. To position itself
    differently from competitors, a firm must decide whether it intends to
    perform activities differently or to perform different activities. Strategy
    defines the path which provides the direction of actions to be taken by
    leaders of the organization.
    A functional strategy refers to an approach that points up a particular
    functional area of an organization. It sets down to achieve some
    objectives of a business unit by maximizing resource productivity. Once
    in a blue moon, functional strategy names departmental strategy since
    each business function frequently devolves with a section. Examples of
    functional strategy comprise production strategy, marketing strategy,
    human resource strategy, and financial strategy.
    The functional strategy is concerned with developing the right stuff to
    provide a business unit with a competitive advantage. Each business unit
    has its own set of departments, and every department has a functional
    strategy. Functional strategies adapt to support a competitive strategy. For
    example, a company following a low-cost competitive strategy needs a
    production strategy. It insists on reduction cost operation and also a
    human resource strategy.
    Furthermore,  It insists on retaining the lowest possible number of
    employees. These employees are highly qualified to work for the
    organization. Other functional strategies such as marketing strategy,
    advertising strategy, and financial strategy must also be formulated aptly
    to support the business-level competitive strategy.

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