broad strategies

Broad Strategies in Marketing

Functional strategies include HYPERLINK "http /en .wikipedia .org /wiki /Marketing_strategies " marketing strategies , new product development strategies , human resource strategies financial strategies , legal strategies , supply-chain strategies , and information technology management strategies . The emphasis is on short and medium term plans and is limited to the domain of each department 's functional responsibility . Each functional department attempts to do its part in meeting overall corporate objectives , and hence to some extent their strategies are derived from broader corporate strategies

Many companies feel that a functional organizational structure is not an

br efficient way to organize activities so they have HYPERLINK "http /en .wikipedia .org /wiki /Reengineering " reengineered according to processes or strategic business units (called SBUs . A strategic business unit is a semi-autonomous unit within an organization . It is usually responsible for its own budgeting , new product decisions , hiring decisions , and price setting . An SBU is treated as an internal profit centre by corporate headquarters . Each SBU is responsible for developing its business strategies , strategies that must be in tune with broader corporate strategies

The lowest ' level of strategy is operational strategy . It is very narrow in focus and deals with day-to-day operational activities such as scheduling criteria . It must operate within a budget but is not at liberty to adjust or create that budget ( Carpenter and Sanders the strategic management textbook , 2006

Operational level strategy was encouraged by HYPERLINK "http /en .wikipedia .org /wiki /Peter_Drucker " HYPERLINK "http /en .wikipedia .org /wiki /Peter_Drucker " Peter Drucker in his theory of HYPERLINK "http /en .wikipedia .org /wiki /Management_by_objectives " HYPERLINK "http /en .wikipedia .org /wiki /Management_by_objectives " management by objectives (MBO . Operational level strategies are informed by business level strategies which , in turn , are informed by corporate level strategies . Business strategy , which refers to the aggregated operational strategies of single business firm or that of an SBU in a diversified corporation refers to the way in which a firm competes in its chosen arenas ( Carpenter and Sanders the strategic management textbook , 2006

Corporate strategy , then , refers to the overarching strategy of the diversified firm . Such corporate strategy answers the questions of "in which businesses should we compete " and "how does being in one business add to the competitive advantage of another portfolio firm , as well as the competitive advantage of the corporation as a whole

Strategic management includes

Strategic management involves adapting the organization to its business environment

Change creates novel combinations of circumstances requiring unstructured non-repetitive responses

Affects the entire organization by providing direction

Involves both strategy formation and also strategy implementation

Partially planned and partially unplanned

Done at several levels : overall corporate strategy , and individual business strategies

Involves both conceptual and analytical thought processes

Reference

Carpenter and Sanders , The strategic Management textbook , 2006...