Depending on the organization, we can distinguish the following variants of strategy:
Strategy at the level of corporation
It is shaped by the head managers, which oversees whole organization rather than one type of business. It deals with the activities undertaken by the organization as a whole, and seeks to define the role it plays and roles of particular business units.
The strategy at the level of the strategic business unit (SBU)
It is used to control of interests and activities of a single business unit. Strategic Business Unit SBU) groups all types of economic activities, designed to produce a specific type of product or service and treats them as a single unit.
It creates a framework for the management of such areas as: finance, research and development, marketing, ecology, etc. This strategy consists in determining how the function is to be implemented, to foster the desired competitive advantage, and on the coordination of the function with other functions in company.
Comparison of the basic types of business strategy
|Aspect||Corporate strategy||SBU strategy||Functional strategy|
|Goals and tasks||
|Sources of competitive advantage||
|The main areas of decision||
- Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard business review, 72(1), 107-114.
Author: Krzysztof Wozniak