Question

4 Strategy can be broken down in three (3) major components. Briefly list and discuss them

Answer 1

Assessment will discuss the significant components strategy can get broken down into:

1. Corporate level:

In this component, strategic decisions related to a firm's direction to achieve its long-term objectives.

These are the decisions related to the product market scope, acquisition, and resource allocation.

There are four major corporate-level decisions, mainly stability, reduction, expansion, and a combination of any of these.

They are also known as grand level strategy.

2. Business level strategy:

In this component, the implementation of corporate strategy gets explained. They get formulated for the corporate level strategy implementation.

It determines how the firm will compete in a given business.

The main decisions taken on this level are product-market issues, allocation of resources, and coordination between them to optimally contribute to the achievement of corporate-level objectives.

3. functional strategy:

Every single business unit have different functions like finance, production, marketing, and others.

A functional strategy helps in the implementation of a business-level strategy.

The business-level strategy sets objectives for a specific functional area, performs allocation o resources, and coordinates various functions for optimally contributing to the achievement of business level and corporate level strategies.