What Are The Factors That Influence The Nature Of Business Level Strategy
The decisions a company makes on its way to creating, maintaining and using its competitive advantages are business-level strategies. A strategic business unit can consist of a product line, division, or other profit centers that can be planned separately from the other business units of the company. After evaluating the company’s product line, target market and competition, a small business owner can better identify where her competitive advantage lies. The strategy formulation phase at the business level deals with positioning of the business against rivals, strategy need to be changed according to the expected changes in the demand and Influence the nature of competition through vertical integration and political actions. There are three generic strategies which are cost leadership, differentiation, and focus that can be implemented at the business unit level in order to create a competitive advantage for the company. …show more content…
When additional businesses become part of the company, the small business owner must consider corporate-level strategy. Corporate strategy provides the guidelines for the businesses to achieve their long term objectives. When developing a corporate strategy, it is essential to determine the purpose and the scope of the organizational activities. Then about the nature of its business by considering the environment in which it operates, its marketplace position and the level of competition it faces. Corporate strategy is created based on the vision of the organization. This is the most important level of strategy since it is heavily influenced by the investors in the business activities and acts to guide strategic decision-making throughout the business. Corporate strategy is verbally expressed in the company mission statement. Usually, in every organization the top management is responsible for establishing the corporate
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