Question

Differentiate between corporate-level and business-level strategies and give examples of each.

Answer 1

In an organization, there are three levels of management. They are: Corporate level, business level and functional level. At each of these levels, different kinds of strategies have to be taken up. So, corporate level strategies are at corporate level i.e. top management and business level strategies are at business level i.e. middle level management.

The business level strategy is for a single business and it aims at making the business achieve their objective and goal.

Corporate level strategies are for the whole organization. It deals with all the different businesses that are a part of the organization. The aim here is to ensure that the business which is doing well should be the area in which the organization would compete.

Business level strategies are at executive level but corporatelevel strategies are legislative and decisive.

Example of business level strategy is cost leadership and product differentiation. Example of corporate level strategy is expansion of business and stability.