▷ 3 Types or Levels of Business Strategy

Discover the three levels of strategy that will lead you to success. This article provides you with the roadmap you need to lead your business to success. Delve into the art of strategy and grow your business.

In the dynamic business world, you, as a leader or entrepreneur, have before you the important task of making the right decisions that drive the growth and success of your company. The design and application of strategies They are crucial in this process. This article breaks down the three levels of business strategies, and offers you examples for a deeper understanding.

1.- Corporate Strategies

The corporate strategies They seek to define the direction and global reach of a company. These involve large-scale decisions that impact the entire organization. They consider questions such as: In what industries should the company operate? Should you diversify your products or markets? Should you merge or acquire other companies?

The corporate strategy provides a map that guides a company in the desired direction. It is a high-level decision that sets the scope and direction for the entire organization. Here are some key elements that should be included in a corporate strategy:

1. Vision and mission: The vision is a statement of the desired future for the company, and the mission It is a statement of the fundamental purpose of the company. These are fundamental as they guide all strategic decisions.
2. Surrounding analysis: This includes an analysis of both the internal and external environment. Internally, you must understand your strengths and weaknesses, and externally, you must understand the opportunities and threats present in your environment. He SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a commonly used tool for this purpose.
3. Objectives and goals: These are the specific results that your company hopes to achieve within a certain period of time. They must be clear, measurable and aligned with the vision and mission of the company.
4. Choice of Activities: The corporative strategy it also implies choosing in which activities the company will participate. This may involve the diversification into new markets or consolidation in existing markets.
5. Resource management: Decisions about how resources will be allocated and used are also part of the corporative strategy. This may include decisions about investments, mergers and acquisitions, and the allocation of capital.
6. Implementation plan: Last but not least, a corporate strategy should include a plan detailed implementation. This includes the specific steps that will be taken to implement the strategy, who will be responsible for each step, and when each step is expected to be completed.

Remember, an effective corporate strategy is one that takes all these elements into account and aligns them with the company's overall goals and objectives.

For example, Google, a company primarily known for its search engine, has implemented a corporate diversification strategy, delving into sectors such as artificial intelligence, mobile devices, digital advertising and more. These types of strategies have a significant impact on the organization and establish the framework for decisions at the business and functional level.

See in depth: Corporative strategy

2.- Business or Competitive Strategies

Once defined the way to corporate level, you must set the business level strategies. These are about how to compete in the specific selected markets. They focus on building and maintaining competitive advantages sustainable. Business strategies are based on how the company can compete effectively in its industry.

An example of this can be Apple and its differentiation strategy. In the smartphone market, for example, there are many companies, but Apple sets itself apart by offering high-quality products, innovative design, and a superior user experience. This is your business strategy, how you compete and differentiate yourself in the marketplace.

3.- Functional or Operative Strategies

The functional or operational strategies, on the other hand, are related to the daily operations of each department of the company. Each function or department, such as finance, marketing, human resources or production, needs to have its own strategies aligned with business and corporate strategies.

For example, if a company has a business strategy of differentiation by the superior quality of its products, the production department may have a functional strategy of implementing strict quality controls, and the human resources department can focus on the recruitment and training of highly skilled.

See in depth: Functional or operational strategies

In short, the corporate strategies, business and functional are essential to lead and manage any organization effectively. Each level of strategy is interrelated and mutually supportive to form a strong framework that guides the direction of the business. As a leader, it is vital that you understand and apply these three levels of strategy to ensure the sustainable growth and success of your organization.