Functional-Level StrategyĪ functional-level strategy aims at improving the internal operations of a company. Corporate-Level StrategyĬorporate strategy deals with the big picture questions like what business an organization should be involved in, how to gain competitive advantages in an industry, and how to establish the optimal set of business practices. There are three levels of strategy that exist in every organization. If the strategy is poorly chosen or formulated, it has cascading effects on the effectiveness of employees in pretty much every department within the organization. Three Levels of Strategy:Īn organization should base every decision it makes on its overall strategy.

It allows you to take corrective measures when certain aspects of your business are going off track. It continually measures the distance between where you currently are and what your eventual goal is. Allows AdaptabilityĪ focused organizational strategy allows teams to be more nimble and adapt to obstacles much better. It helps reduce choices and provides a way to assess different options more accurately. When you set an overarching strategy - even if it’s broad, it gives employees something to get behind and creates alignment within and among departments.Ī clear organizational strategy allows you to make decisions that are in line with achieving your goals. Without an organizational strategy, that’s nearly impossible. One of the most difficult things to achieve in any business is getting teams and departments to work towards a common goal. When you set an overarching strategy - even if it’s board, it gives employees something to get behind and creates alignment within and among departments. Without an organizational strategy that’s nearly impossible. It defines success and shows you what activities you should execute first in order to move your business toward your eventual goal. An organizational strategy provides your business with priorities. Without clear direction, a business can continue to do many tasks without achieving any meaningful change. An Effectively Devised Organization Strategy Would Allow a Company to: Set Direction and Priorities It is a dynamic, long-term plan that aligns the actions of a company and specifies how your business will allocate resources (money, labor, and inventory) to support infrastructure, production, marketing, and other business activities. A powerful mission and lofty goals may provide direction for an organization but do little to clarify the everyday tasks needed to get you there.Īn organizational strategy is a plan that helps bridge the gap between a company’s vision and actual work. Sometimes we need more than a big picture vision to guide the actions of a company.

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