Chapter objective 
   – At the end of the chapter students able to know 
    types of strategies 
   – You will understand guidelines for pursuing 
    strategies
   –Michael Porter’s generic strategies  
   Three Levels of Strategy in Organizations
                 Strategy hierarchy
    1. Corporate strategy: 1) growth strategy, 2) 
        stability strategy, 3) retrenchment strategy.
    2. Business unit strategy: 1) cost leadership, 2) 
        differentiation, 3) focus, 4) mixed.
    3. Functional strategy.
                                                        4
               Cont….
  1.Corporate-level strategy: The level of strategy concerned 
   with the question “What business are we in?”
  • Pertains to the organization as a whole and the 
   combination of business units and product lines that 
   make it up.
  2. Business-Level Strategy: The level of strategy concerned 
   with the question “How do we compete?”
  3. Functional-Level Strategy: The level of strategy 
   concerned with the question “How do we support the 
   business-level strategy?”
  • It pertains to the major functional departments within 
   the business unit.
                            Corporate Strategy
      •   Corporate strategy defines what business or businesses the firm is in or 
          should be in, how each business should be conducted, and how it relates to 
          society. 
      •   This strategy is for the company and all of its business as a whole. 
      •   Corporate strategies are established at the highest levels in the 
          organization; they generally involve a long-range time horizon and focus on 
          the entire organization. 
      •    Such issues involve the basic character, capability and competence of the 
          firm; the direction in which it should develop its activity; the nature of its 
          internal architecture; governors and structure; the nature of its 
          relationships with its sector, its competitors and the wider environment.
      •   Corporate strategies usually fit within the three main categories of stability, 
          growth and retrenchment