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Concepts in Strategic Management and Business Policy 14th Edition by Thomas Wheelen,David Hunger,Alan Hoffman,Chuck Bamford
Edition 14ISBN: 978-0133126129Concepts in Strategic Management and Business Policy 14th Edition by Thomas Wheelen,David Hunger,Alan Hoffman,Chuck Bamford
Edition 14ISBN: 978-0133126129 Exercise 2
How does strategic management typically evolve in a corporation
Explanation
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The strategic management in a corporation would generally evolve in the following manner:
1. Corporate strategy: This would be a roadmap for growth and management of the various business units and verticals. The corporate strategy would be binding on all the employees of the corporation. The management of portfolio under the brand would be a corporate strategy for the firm. This is generally done and formulated by the directors and other top executives.
2. Business strategy: Business strategy would be specific to a particular business unit. Each business unit would have its own business level strategy for achieving the goals and targets. The business strategy consists of cooperative and competitive business strategies.
Competitive business strategy is basically a strategy used for differentiation of the products and services from the competitors.
Cooperative business strategy consists of forming an alliance with the competitors that would help in the overall mutual benefit.
3. Functional strategy: The functional strategy aims at optimizing the productivity and efficiency of the resources used by the management. The strategy of spending heavily on advertisements by P G in order to create the "pull" is a part of the functional strategy. This "pull" strategy is responsible for drawing the customers and thereby creating a demand for the product.
These three types of strategies are used simultaneously by the firms while managing the business. The functional strategy would be in line with the business strategy, which in turn would be in line with the corporate strategy.
1. Corporate strategy: This would be a roadmap for growth and management of the various business units and verticals. The corporate strategy would be binding on all the employees of the corporation. The management of portfolio under the brand would be a corporate strategy for the firm. This is generally done and formulated by the directors and other top executives.
2. Business strategy: Business strategy would be specific to a particular business unit. Each business unit would have its own business level strategy for achieving the goals and targets. The business strategy consists of cooperative and competitive business strategies.
Competitive business strategy is basically a strategy used for differentiation of the products and services from the competitors.
Cooperative business strategy consists of forming an alliance with the competitors that would help in the overall mutual benefit.
3. Functional strategy: The functional strategy aims at optimizing the productivity and efficiency of the resources used by the management. The strategy of spending heavily on advertisements by P G in order to create the "pull" is a part of the functional strategy. This "pull" strategy is responsible for drawing the customers and thereby creating a demand for the product.
These three types of strategies are used simultaneously by the firms while managing the business. The functional strategy would be in line with the business strategy, which in turn would be in line with the corporate strategy.
Concepts in Strategic Management and Business Policy 14th Edition by Thomas Wheelen,David Hunger,Alan Hoffman,Chuck Bamford
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