Hierarchy of strategy can be defined as strategies developed at different levels within particular organization to respond to specific needs and demands of organization.
Actually, three distinct levels of strategy hierarchy are distinguished within organization. Moreover, all these levels are strongly interrelated because it ensures the best company’s performance. If levels aren’t interrelated, then organization may fail to achieve the set objectives and missions. The three levels are corporate strategy, business strategy and functional area strategy.Firstly, corporate strategy should answer what kind of businesses the company should develop to success at the particular market segment. Also, corporate strategy indicates the emphasis of the businesses.
The primary focuses of corporate strategy are: scope of business, and resource allocation and deployment among the chosen businesses. Secondly, business strategy aims at answering how the organization or company is going to remain competitive
...within particular industry.This strategy is very important, because it is rather difficult even for big companies to remain competitive in our swiftly changing business environment. Failure to compete means failure to develop further.
The primary focuses of business strategy are: market and product segmentation; competitive advantage; distinctive competencies; and stage of product ad market evolution. Thirdly, functional areas strategy finds ways how to maximize productivity of available resources.The primary focus of the strategy is integration and careful coordination of activities within particular organizational function. Question 2: What constitutes a good corporate strategy and why? Developing good corporate strategy is very important for organization as proper choosing of businesses and activities forms future performance at the marketplace. However, when developing good strategy, it is necessary to remember, firstly, whether the overall direction is chosen.Overall path constitutes significantly
good strategy because it suggests enhancing skills and increasing opportunities and available resources without choosing narrow approach.
Resource allocation is also important because any good strategy should take advantage of organizational assets and resources to embrace new opportunities, to emerge public concern, or to make people aware of economic development efforts. Further, strategic managers should be able to maximize resistance and barriers which are inevitable.Good corporate strategies should, therefore, deter opponents and to attract allies. Mission is vital component of every good strategy as it aims at reducing problems, such as, for example, unemployment, substance abuse at working place, etc. Developing good corporate strategies is the ability to focus organizational efforts on what should be achieved.
Good strategies assist companies in taking advantage of emerging opportunities and finding new resources, developing more efficient time management, and responding effectively to existing barriers and coping with resistance.
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