Framework
Levels of strategy
The question it answers
Which level does a decision belong to (corporate, business or functional) and who is accountable for it?
- Origin
- Dess et al., 2016; Johnson et al., 2008
- Diagram type
- Comparison table
- Level of analysis
- Firm
- Topics
- Strategy & leadership
Diagram
Levels of strategy
| Criterion | Corporate level | Business level | Functional (operational) level |
|---|---|---|---|
| Core question | Which industries should we be in, and how should capital be allocated? | How do we compete in one particular market? | How do we do the day-to-day work effectively? |
| Example decision | Acquire, divest, diversify. | Position on cost or differentiation. | Production schedules, marketing campaigns, hiring. |
| Time horizon | Long | Medium | Short |
Pitfalls
Pitfall
Calling everything 'strategy'. An ad campaign is usually an operational tactic.
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Dess, G.G., McNamara, G. and Eisner, A.B. (2016) Strategic management: text and cases. New York: McGraw-Hill Education.No DOISource page
- Johnson, G., Scholes, K. and Whittington, R. (2008) Exploring corporate strategy: text and cases. Harlow: FT Prentice Hall.No DOISource page