Levels of Strategy. Terms. Arrange the following terms in a logical hierarchy: Company Division Strategic Business Unit (SBU) Corporation Industry Value Chain Person Department Market. Terms. Arrange the following terms in a logical hierarchy:. Industry Value Chain Company
A market refers to the place where goods and services are exchanged.
1. Single Product: 95% of revenues from a single product line
2. Dominant Product: 70-94% of revenue from a single product line
3. Related Product: Less than 70% of revenue from a single product line and and the remainder of revenues from a related product domain
4. Unrelated Product: Less than 70% of revenue from a single product and remainder of revenues from an unrelated product domain
The Impact of IT on strategy is dramatically different depending on the level of strategy. On what level is your paper?
(Economies of Scope)
Can still go for business-level growth (economies of scale)
Operational: How do we support the functional level strategy?
Business L.S.: Become the low cost producer of widgets
Functional L.S. (Mfg.): Reduce manufacturing costs by 10%
Operational (Plant #1): Increase worker productivity by 15%Functional / Operational Level Strategy
FinanceA Simple Organization Chart(Dominant or Related Product Business)
Div. 3An example of an Unrelated Product Business(Note: By itself, an SBU can be considered a related product business)
SBU: a single business or collection of related businesses that is independent and formulates its own strategy
Ex.: G.E. (General
Strategic Business Unit 1