Example Of Business Level Strategy – Am I telling you a secret? I’ve been using the word corporate-level strategies for many years without knowing what it actually means. Later, after learning the meaning, I realized that I was using it correctly. Miracle right? Join us as we x-ray the concept of corporate-level strategy. It promises to be interesting.

Strategies tend to be long-term in nature, but you should have a means for adjustments, based on uncertainty and changing market conditions.

Example Of Business Level Strategy

Example Of Business Level Strategy

Strategies or what you can call business decisions are made by each of these levels. These strategies are done in 3 different ways by these management levels.

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That is, strategies can be formulated at three levels, namely, the corporate level, the business level, and the operational level.

At the corporate level, the strategy is formulated for the organization as a whole. In essence, corporate strategy deals with decisions related to various business areas in which the company operates and competes. It is when a business makes a decision that affects the entire company.

The decision affects the company’s finances, management, human resources, where the products are sold, almost everything in the company. The goal of corporate-level decision making is to maximize profitability and maintain financial success in the future.

In addition, this decision is used to help increase competitive advantage over competitors and continue to offer a unique product or service to consumers.

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Strategies can come in various forms. For this post, we will discuss the four main types of corporate strategy.

Every business wants to grow and occupy a large market share if it wants to continue in that niche.

There is vertical and horizontal strategy when it comes to growth strategies. A vertical strategy seeks growth by taking over various components of the operation that it usually outsources.

Example Of Business Level Strategy

For example, a juice company farming for the fruit it uses. By taking over part of the supply chain, they can better control quality and supply.

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A horizontal growth strategy refers to a business extending its reach from existing products or services to new geographic areas or new target markets.

I hope you know that this horizontal growth strategy can come in the form of niche marketing? That is expansion into other niches or market segments in which you have never been involved.

Means by which a company can expand are; Concentration, Integration, Diversification, Cooperation and Internationalization. Concentration is done through Market penetration, Market Development and Product development.

At this point, management could choose a stable strategy to maintain market shares. Methods used to achieve this include making processes more cost-effective through automation, cutting costs where possible, and negotiating better raw material costs.

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So, when a company is convinced that it must continue in the existing business and is doing quite well in that business but no scope for significant growth, the stability is the strategy to be adopted.

This strategy also requires management to focus on customer retention. This is a popular strategy used during adverse economic periods.

However, there are times when this strategy makes sense for a small business, regardless of the external business environment. You have to figure that out.

Example Of Business Level Strategy

If your business is operating in the stability strategy, you can Pause/Proceed with caution, make no change, or operate with a Profitable strategy.

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A withdrawal strategy may require a company to redefine its business, leave some markets or reduce its functions. It can make a firm layoff, reduce R&D or marketing or other expenses, and increase the collection of receivables.

Redefining the business and reducing the speed of activities can improve a company’s performance. Expansion in combination with Retrenchment is a very common strategy. Cut back alone is probably the least commonly used strategy.

A withdrawal strategy involves a partial or total withdrawal of either products, markets or functions in one or more of a company’s businesses.

This strategy is used during periods of decline and crisis, when it is thought that business is not returning profit to the company.

Corporate Strategy Essay 01

2. If there is pressure from various groups of stakeholders to improve performance. You cut the loss-making part of the business in a no-investment strategy.

3. If better opportunities to do business are available elsewhere, a company can better utilize its strengths. The company can be liquidated.

Combination strategies are a mixture of expansion, stability or retreat strategies applied either simultaneously in different businesses or at different times in the same business.

Example Of Business Level Strategy

For example, as companies divest, they must also formulate expansion plans that will strengthen the remaining businesses, start new ones, or make acquisitions.

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An organization following a stability strategy for quite some time must consider expansion. And he who has expanded for a long time must pause to support his businesses. Multi-business firms must adopt multiple strategies either simultaneously or sequentially.

Implementing a company-level plan can seem like a difficult procedure, especially if you’ve never had one before. However, the benefits of a thorough business plan far outweigh the time and work required to implement the strategy.

Being behind the curve is one of the worst things you can do for your business. When you are, you have to react to everything that happens to you. However, with a good corporate-level plan, your company can be proactive rather than reactive.

Your company will be able to predict future events and plan accordingly. In this approach, staying ahead of the curve (being proactive) helps your company maintain the market and stay ahead of the competition.

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A profitable business is efficient. In addition, a thorough company-level plan can put your company on the path to greater efficiency in all sectors.

The corporate strategy gives your company a goal to strive for and a road map on how to get there. It shows where you should make changes to achieve your goals and how to make each component of your business work more successfully.

With a focused corporate-level strategy, your company will gain meaningful insight into the plethora of aspects that affect how you do business, such as:

Example Of Business Level Strategy

Controlling these elements gives you knowledge and power that can help you raise your market share like never before.

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Profitability follows directly from advances in efficiency and market share. When you implement a company-level plan, you put your company on the path to greater profitability.

It may take some time to achieve the profitability you’re looking for (because you have to address efficiency and market share first), but once you do, you’ll realize how valuable (and strong) corporate-level planning is to your business.

Industries and marketplaces are always changing. You want your company to be strong enough to withstand any changes that come your way.

A solid corporate-level plan serves as a foundation upon which the rest of your company can rely. It provides you with the focus and foresight needed to keep your business running smoothly and successfully through the ups and downs of your industry.

Levels Of Strategy

When you develop a corporate strategy, you give your company a clear direction. This could make it much easier to specify the particular steps required for your company to thrive.

Corporate level strategies are long-term rather than short-term in nature. You can create them quickly, but implementing and completing them will take much longer.

Corporate-level plans are inherently ambiguous. This is due to the fact that they are incredibly broad and often include a large number of moving elements (the success of your departments, the market, your competition, the economy, etc.).

Example Of Business Level Strategy

A corporate-level strategy should be aimed at your company’s overall goals. Improving the performance of your kitchen staff is not a corporate-level plan. It is, however, a component of a much larger goal (such as increasing consumer perception) that your company is trying to achieve.

Tips For Successful Strategy Formulation

Corporate level tactics are naturally more complex because they apply to the entire company. They will have many moving pieces and can consist of a long list of sub-strategies (both business level and functional level).

Strategies at the corporate level do not have to be set in stone. You want your company to be able to react to changing consumer needs as well as market and industry developments. To do this, your corporate strategy should be as dynamic as possible.

That doesn’t mean you have to include contingency plans for every possible scenario – that can be an impossible undertaking. Allow your company-level plan (and yourself) to adapt in response to your company’s requirements.

See your company as a tree in a storm to better understand the importance of a dynamic corporate level strategy. The trees that can bend and change the most are the ones that survive the storm the longest. They are blown up and collapse to the ground if they don’t have that capacity.

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A dynamic corporate-level strategy makes your company more adaptable in the face of market and industry storms, preventing it from exploding and collapsing to the ground.

Corporate level strategies, by definition, are comprehensive and will have a positive impact on the entire business – from the owners at the top to the new employee just starting out. Every department, every executive, every manager and every employee has a place to focus theirs

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