Levels of Strategic Decision Making

Question 1

Focus: How an organization competes within a specific industry or market
Decisions: Relate to competitive strategies such as cost leadership, differentiation, or focus

Example
 A company deciding to adopt a low-cost strategy to compete on price
 A company deciding to differentiate its products or services through innovation or superior quality
 A company choosing to focus on a particular niche market

Answer 1

Business Level

Question 2

Focus: the overall direction and scope of the organization.
Decision: Involve broad strategic choices such as diversification, mergers, acquisitions or divestments.

Examples:
 A company deciding to enter a new market or industry
 A conglomerate deciding to sell off a particular business
unit
 A company choosing to expand internationally

Answer 2

Corporate Level

Question 3

Focus: Specific functional areas within the organization
Decision: Involve tactical decisions that support the overall business strategy.

Example
 A marketing department deciding on a new advertising campaign
 A production department deciding to invest in new equipment to improve efficiency
 A human resources department deciding on a new compensation and benefits package.

Answer 3

Functional Level