1.1 THE STRATEGIST IN YOU: The Three Levels of Strategy

(SHORT NOTES FROM STRATEGY TOOLS:

Core Strategy Tools at http://www.mindtools.com)

 

Strategy is the art of working out how you'll "win" in business and in life.  Strategy has been studied for years by business leaders and by business theorists.  There is no definitive answer about what strategy really is.

People think about strategy in different ways.  Some people believe that the present must be analysed carefully, market or industry changes had to be anticipated, from this, you'll plan how succeed in the future.  Others think that the future is just too difficult to predict, and they prefer to evolve their strategies organically.

Planning for success in the marketplace is important.  Organizations need to anticipate and prepare for the future at all levels.  Many successful and productive organizations have a corporate strategy to guide the big picture.  Each business unit within the organization then has a business unit strategy.  Each team should have its own strategy to ensure that its day-to-day activities help move the organization in the right direction.  Thus, a simple definition of strategy can be: "Determining how we are going to win in the period ahead".

 

3 Level Of Strategy

Corporate Strategy ·        refers to the overall strategy of an organization ·        determines how the corporation as a whole supports and enhances the value of the business units ·        done by: o   building strong internal competences o   sharing technologies and resources between business units o   raising capital cost-effectively o   developing and nurturing a strong corporate brand ·        should o   thinking about how the business units within the corporation should fit together o   understanding how resources should be deployed to create the greatest possible value ·        factor that needs to be considered o   organization's design o   business structure o   the people o   other resources

Business Unit Strategy ·        concerned with competing successfully in individual markets ·        need be linked to the objectives identified in the corporate level strategy ·        think about your core competencies ·        People working within each unit should be able to draw direct links between this strategy and the work that they're doing ·        important to have a clear definition of the business unit's mission, vision and values

Team Strategy ·        must lead directly to the achievement of business unit and corporate strategies ·        useful to define the team's purpose and boundaries