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Levels of strategic management


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Levels of strategic management

Business strategies are planned and realized simultaneously or sequentially on the several levels in the company.

Here are three basic levels: corporative level, level of the enterprise or of business units and functional level



1.      Corporative strategy. Corporative level is considered to be the first one. Strategy of corporative level define the company as a whole, behavior of its subdivisions or business units combination of which allows to apprehend the company as an entirety and answer the question: what kind of business does company attend?

Strategic activity on the corporative level includes, for example, buy of new business, enlargement or decrease of just existence one, creation of  joint business.

Naturally on this level business strategy is based on such important aspects as development of new business plan including marketing plan. Other financial planning’s with financial projections are also occurred.

Corporative level of management is represented by the chief manager (general director, president of corporation and so on), board of directors and by other senior staff who take the strategic decisions for the whole organization. Usually obligations of these high-level officials include the definition of the purpose, mission and goals of organization, the reveal of the key spheres of activity, assignment of resources for every kind of activity and also the formulation of  strategies which encompass the individual activity. Corporative strategy also includes questions of financial and organization structure of the enterprise all in all. Strategic tasks of the corporative level can be the following ones: to open new enterprise abroad or to create offshore production in the country with the cheap working force.

2.      Strategy of the enterprise. The second level which is often characterized as the competitive or business strategy. The main question of this level is how to compete in the concrete market – with whom we compete? Here the concrete strategies of group and individual activity are formed on the basis of data come from corporative level.

The typical strategic questions of this level are:


– should the production of the enterprise be in accordance with the competitor’s assortment of goods?

– on what degree should the enterprise and equipment be modernized?

– in what way the suggested activity will be financed?

Strategic tasks are directed on success in the competitive struggle on the level of enterprise. This? For example?  Can be tasks of introduction of new production or service.

3.      Functional strategy. The third level of the strategy is called operative or functional one. The fundamental question of it is what different actions introduce into other strategy levels.

Such procedure as due diligence can help to reveal all strong and weak sides of every level.
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