Strategy is not just for top executives, middle and lower level managers too must be involved in strategic-planning process to the extent possible. In most of the organizations there are three levels of strategies: corporate, business and functional levels.
1. Corporate Level Strategy
Corporate level strategy is fundamentally concerned with the selection of businesses that the organization should compete and with the development and coordination of that portfolio of business. It includes all the objectives and scope of the organization to satisfy stakeholder’s expectation. It is an essential level since it is to a great extent affected by investors in the business and acts to guide strategic decisions across the enterprise.
2. Business Unit Level Strategy
It is responsible for how a business competes successfully and beating rivals in its particular market. At this level competitive strategy is usually formulated. These are strategic decisions on the choice of products, satisfying customer needs, gain an advantage over competitors, exploiting or creating new opportunities, etc.
3. Functional Strategy (Departmental Level or Operational Strategy)
It focuses on how every part of business is organized to present the corporate and also business-unit level strategic path. Strategy of the functional areas like marketing, financial, productive and human resources are based on the functional capabilities of an organization. For each functional area, first major sub-areas are identified and then for each of these sub functional areas, functional content strategies, important factors, and its importance in the process of implementing the strategy is identified.