Hierarchy of Strategy

 

There are three distinct levels of strategy within an organization. It is important that these be properly inter-related.

Corporate Strategy

Questions:

    What set of businesses should we be in?

    What should be the emphasis among these businesses?

Primary Focus:

    Scope of the business.

    Resource deployments among businesses.

Business Strategy

Questions:

    How do we compete in a particular industry?

Primary Focus:

    Distinctive competencies and competitive advantages.

    Product/market segmentation.

    Stage of product/market evolution.

Functional Area Strategy

Questions:

    How do we maximize resource productivity?

Primary focus:

    Coordination and integration of activities within a single function.

See Functional Strategy for more information.

 

Source:  Hofer, C. W. & Schendel, D. (1978). Strategy formulation: Analytical concepts. St. Paul, MN: West Publishing.

See Miles and Snow for a specific theory regarding this.

Copyright 2000 Raymond S. Kulzick. All rights reserved. 000613.

This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance.

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Copyright 2000 Kulzick Associates, PA - Last modified: September 13, 2008