Accounting technicians scheme west africa

182
F.6
Levels/Types of Organisation's Strategies
The various types of organizational strategies include corporate strategy, business strategy, functional strategy and operating strategy.

F.6.1 Corporate Strategy
This consists of the kinds of initiatives that organizations use to establish business positions. Usually drafted and used by Directors and Chief Executive Officers, corporate strategy spells out the current and future businesses an organization wants to be in and what it hopes to achieve with those businesses. It is based on the vision and mission of the organization. A growth strategy is a form of corporate strategy used by an organization to stimulate growth by expanding the number of products offered or markets served, either through current or new businesses (Robbins and Coulter, 2006). Growth strategy can bring about increased sales revenue, market share, etc. For example, part of the growth strategy of Nigerian Bottling Company Plc is to diversify into production of packaged fruit juice and table water.
F.6.2 Business Strategy
These are actions and approaches crafted to produce successful performance in one specific line of business. For example, a strategy aimed at enhancing the market position of soft drinks, one of the range of products of Nigerian Bottling Company Plc is a business strategy. Managers of each of the organization's lines of business, often with the advice and input from heads of functional areas within each business unit.
F.6.3 Functional Strategy
Functional strategies are actions and approaches used by an organization's functional departments to support the business strategy. An example of functional strategy is an organization's marketing strategy, which are approaches for running the sales and marketing functions of the business. An organization's production strategy is a functional strategy that takes care of the production aspect of the business. Inmost organizations, functional strategies are crafted by heads of respective functions with the General Manager of the business unit having final approval.

Download 3.37 Mb.

Share with your friends: