HIERARCHY OF STRATEGIES

LEVEL OF STRATEGIES
 Corporate & business stategy
• Focus of strategic management shifted from planning process to quest for profit.
• The fundamental goal of business is to earn a return on its capital that exceed the cost
of capital.there are two ways to attain this.
• the firm may locate in an industry where favourable conditions result in the industry
earning a rate of return above the competitive level.
• Second , the firm may attain a position of advantage vis-a vis its competitors with in
an industry,allowing it to earn a return in excess of the industry average.
• Corporate stategy defines the scope of the firm in terms of the industries and markets
in which it compets.corporate stategy decisions include,

 Investment in diversification
 Vertical integration
 Acquisition
 New ventures
 Allocation of resources between the different business of the firm.
 Divestment.
 Business stategy.
• Business strategy is concerned with how the firm
competes within a particular industry or market.
This is also referred as competitive strategy.
• The questions ?how can the firm make money ?
 This leads to
 What business or businesses should we be in?
 How should we compete ?
 Answer to the first question describes “ corporate strategy “
and the second describes business ( competitive strategy )
 LEVELS
BUSINESS

CORPORATE LEVEL

TATA

TATA MOTORS TCS TATA HOTELS FMCG

MKTNG FINANCE HR PRODUCTION

OPERATIONAL LEVEL
 Assignment
Prepare the organization chart of-
Reliance industries
GE
Anil Dhirubhai Ambani group
Godrej
Aditya Birla group
ITC