Strategic Planning

There are three levels

of strategic planning -

Corporate
Strategy

Business Business Business

Strategy Strategy Strategy

Functional
Strategies
Prof. S. Pattnaik
 Types of Strategic Planning
• Corporate-level strategy
– Identifies the portfolio of businesses that, in
total, comprise the company and the ways
in which these businesses relate to each
other.
• Diversification strategy
• Vertical integration strategy
• Geographic expansion strategy

Prof. S. Pattnaik
 Types of Strategic Planning (cont’d)

• Business-level/competitive strategy
– Identifies how to build and strengthen the
business’s long-term competitive position
in the marketplace.
• Cost leadership
• Differentiation
• Focus

Prof. S. Pattnaik
 Types of Strategic Planning (cont’d)

• Functional strategies
– Identify the basic courses of action
that each department will pursue in
order to help the business attain its
competitive goals.

Prof. S. Pattnaik
Business Strategy = Overall Cost Leadership
Common Organizational HR Strategies
Characteristics

• Intense supervision of • Detailed work planning

labor • Emphasis on technical
• Tight cost control qualifications and skills
requiring frequent, • Emphasis on job-specific
detailed control reports training
• Low-cost distribution • Emphasis on job-based
system pay
• Structured organization • Use of performance
and responsibilities appraisal as a control
• Products designed for device
ease in manufacture
Prof. S. Pattnaik
 Business Strategy = Differentiation

Common Organizational HR Strategies

Characteristics
• Strong marketing
• Emphasis on innovation
abilities and flexibility
• Product engineering
• Broad job classes
• Corporate reputation for • Loose work planning
quality or technological
• External recruitment
leadership
• Team-based training
• Amenities to attract
highly skilled labor, • Emphasis on individual-
scientists, or creative based pay
people.
Prof. S. Pattnaik
 Business Strategy = Focus
Common Organizational HR Strategies
Characteristics

Combination of cost-
Combination of HR
leadership and
differentiation strategies of the
strategy directed at a other two strategies.
particular strategic
target.

Prof. S. Pattnaik