Question
Distinguish corporate level strategy and business level strategy, State three benefits of Strategy.
Answer :
Word Count : 1096
| Aspect | Corporate Level Strategy | Business Level Strategy |
|---|---|---|
| Definition | Focuses on the overall scope and direction of the company as a whole. It involves decisions regarding which industries and markets the company should compete in. | Concerned with how a business unit competes within a particular industry or market segment. It involves decisions regarding how to position the company's products or services relative to competitors. |
| Scope | Broad and overarching, affecting the entire organization. | Narrower and more specific, focusing on individual business units or product lines. |
| Decision-Making Authority | Typically made by top management or the board of directors. | Often made by middle or lower-level managers responsible for specific business units. |
| Time Horizon | Long-term perspective, often spanning several years or decades. | Short to medium-term perspective, typically focusing on the next few years. |
| Focus | Concerned with issues such as diversification, mergers and acquisitions, and strategic alliances. | Concerned with issues such as market positioning, competitive advantage, and resource allocation within a specific market or industry. |
| Key Questions | Where should the company compete? How can the company create value across its various businesses? | How can the company differentiate itself from competitors? How can it achieve sustainable competitive advantage? |
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