Types of corporate level strategies pdf

One of the most challenging aspects of corporate strategy is balancing the tradeoffs between risk and return across the firm. Corporatelevel strategies define a plan to hit a specific target needed to achieve business goals. According to porter, there are three types of businesslevel strategy any organization can pursue to gain an advantage over its competitors. Levels of strategy what are different strategy levels. Selecting corporatelevel strategies 2012 book archive lardbucket. Success is when that strategy generates a sustainable, above industry average profit. The three main types of corporate strategies are growth strategies, stability strategies and retrenchment.

The following article throws light upon the types of corporate strategy. What are the different types of strategies in business. There are a number of different growth strategies, but the most common are. Growth strategy like the name implies, corporate strategies are those corporate level strategies designed to achieve growth in key metrics such as sales revenue, total assets, profits etc. Corporate strategy is about strategic decisions about determining overall scope and direction of a corporation and the way in which its various business units work. It is also about how and where management decides to engage in those activities. Five business level strategies definition marketing. Corporate strategy is the highest level of strategy followed by business level strategy and finally functional level strategy. Strategy can be classified based on hierarchy into four levels. Vertical integration integrating successive stages in the production and. After youve established your business level strategy, the final step is to put those strategies to use by implementing a functional level strategy. These are cost leadership, differentiation and focus.

Why is it important to understand all three levels of business strategy if youre. What are the two types of diversification and when should they be used. An example of horizontal integration would be apple entering the. Its important to have a holistic view of all the businesses combined and ensure that the desired levels are risk management and return generation are being pursued. Pdf the challenges faced by diversified corporations firms that operate in more than one industry or market have changed over the years. Horizontal integration the merger or acquisition of new business operations. Stability strategy make no change to the companys current activities b. Corporate level strategy can be subdivided into three types based on what you want to do with your business. Michael porter, a professor at harvard business school, is widely regarded as the father of corporate strategy. At the corporate level, it generally means entrance into a promising business outside the scope of the existing business unit. A typical business firm should consider three types of strategies, which form a hierarchy as shown in figure 1. Common types of corporate strategies boundless management. Drug companies, therefore, often exhibit high levels of backward integration to ensure. There are various levels of strategy in an organization corporate level, business level, and functional level.