Levels of Organizational Strategy. Types of Strategic Alternatives 1. Corporate-Level Strategy The set of strategic alternatives that an organization chooses from as it manages its operations simulations across several industries and several markets.
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The set of strategic alternatives that an organization chooses from as it manages its operations simulations across several industries and several markets.
Type of strategy addressing what businesses the organization will operate, how strategies of those businesses will be coordinated to strengthen the organization’s competitive position, and how resources will be allocated among businesses.
How the organization conducts business in a particular industry.
A strategy that seeks to determine how an organization should compete in each of its SBU (strategic business units).
(Price, Quality and Speed are main challenges for an org. in 21st century)
Type of strategy concentrating on the best means of competing within a particular business while also supporting corporate level strategy.
Strategy developed for a specific functional areas such as marketing, finance etc.
Type of strategy focusing on action plans for managing a particular functional area with in a business in a way that supports business level strategy.
The overall organization strategy that
addresses the question “What
business (es) are we in or
should we be in?”
(KDC,Jehlum or K&N Chickens)
iii. Horizontal Integration
(Paktel & Insta Phones, Banks)
(Super Asia Fans & Motor Cycle)
2. Stability Strategy
A strategy that seeks to maintain the status to deal with the uncertainty of a dynamic environment, when the industry is experiencing slow- or no-growth conditions, or if the owners of the firm elect not to grow for personal reasons.
Reputation for being innovative and industry leader
Cost and learning benefits
Control over scarce resources and keeping competitors from having access to them
Opportunity to begin building customer relationships and customer loyalty
Uncertainty over exact direction technology and market will go
Risk of competitors imitating innovations
Financial and strategic risks
High development costsFirst-Mover Advantages–Disadvantages