Question

To stay competitive and superior fit to the competitive environment, strategic managers might consider level of strategy. What are the three levels of strategy. Explain the level and give example of one company in Indonesia , that might formulating those levels

Answer 1

DEFINATION OF STRATEGY:

A strategy is the direction and scope of an organization in the long run. It helps an organization achieve an advantage over its competitors through an efficient configuration of resources. It also ensures that the market’s needs are met along with the expectations of all stakeholders.

LEVELS OF STRATEGIES:

Three types of strategies:

• Corporate Strategies – These are also explicitly mentioned in the organization’s Mission Statement. They involve the overall purpose and scope of the business to help it meet the expectations of stakeholders. These are important strategies due to the heavy influence of investors. Further, corporate strategies act as a guide for strategic decision-making throughout the business.
• Business Unit Strategies – These are more about how a business competes successfully in a particular market. They involve strategic decisions about:
  • Choosing products
  • Meeting the needs of the consumers
  • Gaining an advantage over the competitors
  • Creating new opportunities, etc.
• Operational Strategies – These are about how each part of the business is organized to deliver the corporate and business unit level strategic direction. Therefore, these strategies focus on the issues of resources, people, processes, etc
• EXAMPLE OF AIRLINES INDONESIA

STRATEGY MODEL OF INDONESIAN AIRLINES

Market Attractiveness, Resource Capability, Market-Driven Strategy, Corporate Advantage

Every airline company expects to have a high level of corporate advantage for their business competition. Corporate advantage can be created through market-driven strategy based on market attractiveness and resource capability. In general, the corporate advantage of Indonesian airlines has not been optimal if compared with the foreign airlines in the aspects of flight punctuality, profit gain, or flight safety and security. In fact, Indonesia’s domestic market has very high potential and attractiveness.