Types of Strategies

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.

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.