The Three Levels of Enterprise Strategy
Enterprise strategy can be formulated and implemented at three different levels – corporate, business unit, and functional or departmental level. At the corporate level, you are responsible for creating value for your business. You do so by managing your portfolio of businesses, ensuring that your businesses are successful over the long term, developing business units, and sometimes ensuring that each business is compatible with others in your portfolio. Products and services are developed by business units. The role of the corporation is to manage its business units, products and services so that each is competitive and so that each contributes to corporate purposes.
Corporate Strategy fundamentally is concerned with the selection of your business in which your company should compete and with development and coordination of that portfolio of businesses. A corporate level strategy is concerned with reach; competitive contact; managing activities and business interrelationships; and management practices.
Business Strategy includes battle plans and tactics to fight your competition. A strategic business unit may be any profit center that can be planned independently from the other business units of your corporation. At the business unit level, the strategic issues are about both practical coordination of operating units and about developing and sustaining a competitive advantage for the products and services that are produced. Business strategy deals with positioning and differentiating the business and/or products against rivals; cross-functional process management; anticipating changes in technology and customer perceptions and adjusting the strategy to accommodate them; influencing the nature of competition through strategic and political actions; and building strategic partnerships and co-innovating with other business units, partners, and customers.
Functional Strategy deals with operational methods related to functional business processes and value chain, and value-adding activities that you choose for your business. Functional level strategies in R&D, operations, manufacturing, marketing, finance, and human resources involve the development and coordination of resources through which business unit level strategies can be executed effectively and efficiently.
Executing once these strategies are defined is just as important as defining strategy. Having the ability to take objective and convert those objectives into actional plans that produce business results is a science in itself. This is where we shine. We can help you define your strategy and then once defined, we can show you how to deliver it. This is where many organizations fail and where many so-called strategy companies leave you after months of work. What good are strategic initiatives if the organization can't deliver them?
Call TSI today so we can help you go from idea to implementation with our proprietary strategic planning and delivery methods.