There are three levels of strategies to differentiate among. The broadest, most comprehensive strategy is the corporate strategy. A corporate strategy represents the organization’s plan for achieving the strategic goals set by the organization.
The next level of strategy is business strategies. An organization with separate divisions, such as a conglomerate, will expect each division to have a strategy for achieving that division’s strategic goals. This level of strategy or plan encompasses the particular segments of each division, as the range of differences among divisions can vary substantially.
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Whether organization-wide or at the division level, there are organizational functions. A function covers one dominant purpose and represents an organization’s or a division’s attempt to aggregate all related functions under one organizational umbrella. Examples of major functions include marketing, R&D, human resources, and accounting, as well as other types of functions. There are sub-functions as well. Examples under human resources include benefits, recruitment, training, hiring, etc. Each functional area or sub-function develops a functional strategy (as does each sub-functional area), which is intended to achieve the functional goals (or sub-function’s goals) that are linked to achieving the organization’s strategic goals (or division’s goals, depending on the focus.