Strategy making

hierarchy,
Levels of Strategy
With a example of MNC

PRESENTING BY:
Tasbeeha Salehjee
Strategy Making Hierarchy
Corporate Level Corporate
Strategy Headquarters

Business Level
Level of Strategy Senior Managers
Strategy

Other
Functional Level
department like
Strategy
Marketing…
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» CORPORATE-LEVEL STRATEGY
The corporate-level strategies are the strategies describes the
company’s overall direction in terms of their business.
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Corporate Level Strategies of

» Growth: KFC
• Switched from franchise to company owned in their
larger markets.
• Interest in local community (Neighborhood).
» Retrenchment:
• Introduced different menu items to keep up with local
competitors.
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Corporate Level Strategies

Cont..
» Turnaround:
• Updated Technologies in Service and Production unit.
• Pay closely aligned with customer service and
restaurant performance.
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» BUSINESS-LEVEL STRATEGY 
Business strategy is the means through which organization
attains their desired objectives. Business strategy is usually
formulated in line with the corporate strategy.
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Business Level Strategies of
KFC
» Closed unprofitable restaurants or cut out marginal
products.
» Strive to fill the needs of local markets by hiring
locally and offering menu items that reflect the
culture.
» KFC has focused on improving their presence. By re
establish and maintain an emphasis on clean and
updated restaurants.
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Business Level Strategy of
Cont.. KFC
» By paying close attention to service while maintaining
product consistency they focus on their customer
requirement.
» Differentiation: By providing unique taste of chicken.
They have differentiated their products on the basis of
“Food, fun & Festivity”. They have develop more
product line, as this will increase their reach towards the
customers.
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» FUNCTIONAL-LEVEL STRATEGY
A functional strategy refers to a strategy that emphasizes a
particular functional area of an organization.
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Functional Level Strategies of KFC

• By using segmentation.
• By using market development.
• By using product development.
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Functional Level Strategy
• By using segmentation.
» Demographic segmentation:
-KFC target both the male and females.
-KFC target people within the age group of 6-75.
-The median income and higher income group are the
primary targets of their business.
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Functional Level Strategy

» Geographic segmentation: 
-The residents of the small and the big cities are the
primary target of KFC.
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Functional Level Strategy
» Psychographic segmentation: 
-The middle and upper class of the society are the central
segment of KFC.
-The gregarious, ambitious, luxury and brand lovers also form
the customer segment of KFC.
-The people who are conscious of their health are the new
customer segment of KFC.
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Functional Level Strategy
• By using market development.
» Market Penetration: 
KFC has penetrate in the market by increasing the number of
outlets. The new outlets of KFC through franchisee would help
to reach out to new customers by selling more existing
products and thereby gain the market share. It would help to
secure over the dominant market and create a strong position
in the market.
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Functional Level Strategy
• By using product development.
» Product development : 
KFC have focus on extending the healthier options by
including more veg items and calorie-free items to the
customers. This will help to increase the target market which
in turn would increase the sales of the business.
THANKS!