Page 10 - E2 Integrated Workbook STUDENT 2018
P. 10
Chapter 1
Levels of strategy
Strategy occurs at different levels in the organisation. For large
organisations, the top of the hierarchy is where corporate strategy is
made. This provides the framework for the development of business
strategy, which looks at the strategy for each Strategic Business Unit
(SBU). The business strategy in turn provides the framework for
functional or operational strategies.
Corporate
HEAD OFFICE
Business Business Business
SBU SBU SBU
Functional Functional Functional Functional
IT Marketing HR Finance
2.1 Corporate strategy
What business should we be in?
2.2 Business strategy
How should we compete in our market?
What products should we develop?
2.3 Functional or operational strategy
How will the day to day decisions support the business and corporate strategies?
Illustrations and further practice
Try case study style question 1 from Chapter 1 of the Study Text.
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