JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
PROGRAMME: BACHELOR OF COMMERCE
UNIT NAME: ORGANIZATION BEHAVIOR
UNIT INSTRUCTOR: MR. GERVAS MWETA
UNIT CODE: HBC 2209
ACADEMIC YEAR: 2012/13
LEVELS OF STRATEGIES
Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. Strategies exist at several levels in any organization ranging from the overall business (or group of businesses) through to individuals working in it. Corporate Level Strategy.
Corporate level strategy occupies the highest level of strategic decision-making and covers actions dealing with the objective of the firm, acquisition and allocation of resources and coordination of strategies of various strategic business units for optimal performance. Top management of the organization makes such decisions. The nature of strategic decisions tends to be value-oriented, conceptual and less concrete than decisions at the business or functional level. It is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". Business-Level Strategy.
Business-level strategy is applicable in those organizations, which have different businesses-and each business is treated as strategic business unit (SBU). The fundamental concept in SBU is to identify the discrete independent product/market segments served by an organization. Since each product/market segment has a...
References: 1. Deephouse, D. "To Be Different, or to Be the Same? It 's a Question (and Theory) of Strategic Balance." Strategic Management Journal 20 (1999): 14766.
2. Dyer, J.H., P. Kale, and H. Singh. "When to Ally and When to Acquire." Harvard Business Review 82 (2004): 10816.
3. Hambrick, D., I. MacMillan, and D. Day. "Strategic Attributes and Performance in the BCG Matrix." Academy of Management Journal (1982).
4. Kroll, M., P. Wright, and R. Heiens. "The Contribution of Product Quality to Competitive Advantage: Impacts on Systematic Variance and Unexplained Variance in Returns." Strategic Management Journal 20 (1999).
5. Porter, M. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press, 1985.
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