Module 4 Formulating a Strategy PDF

Module 4 Formulating a Strategy STRATEGIC MANAGEMENT  Strategy making is not just a task for senior executives. In large enterprises, decisions about what business approaches to take and what new moves to initiate involve senior executives in the corporate office, heads of business...

Module 4 Formulating a Strategy STRATEGIC MANAGEMENT  Strategy making is not just a task for senior executives. In large enterprises, decisions about what business approaches to take and what new moves to initiate involve senior executives in the corporate office, heads of business units and product divisions, the heads of major functional areas within a business or division (manufacturing, marketing and sales, finance, human resources, and the like), plant managers, product managers, district and regional sales managers, and lower- level supervisors.  4 DISTINCT ORGANIZATIONAL LEVELS OF STRATEGIES IN DIVERSE BUSINESS Top CORPORATE Mgmt STRATEGY a strategy for the company and all of its businesses as a whole BUSINESS STRATEGY Middle a strategy for level each separate managers business the company has diversified into FUNCTIONAL STRATEGY a strategy for each specific functional unit within a business—each First-line managers business usually has a production strategy, a marketing strategy, a finance strategy, and so on OPERATING STRATEGY narrower strategies for basic operating units—plants, sales districts and regions, and departments within functional Supervisors/team leaders areas 3 LEVELS OF STRATEGY FOR A SINGLE- BUSINESS QUIZ 1 1. Differentiate the level of strategies used by Multi-Level Businesses to Single-Level Businesses. 2. Identify the personnel involved in the creation of the: (a) corporate strategy; (b) business strategy; (c) functional strategy; and (d) operating strategy and their functions. 3. Why is it important to use the right strategy to businesses? What is its effect on the organization?