Levels of strategic management

Strategic management, which includes formulation, implementation, and evaluation, can occur at multiple hierarchical levels. These levels are 1) corporate level 2) strategic business unit (SBU) level, and 3) functional level.

Corporate level strategies are concerned with the overall purpose or objectives of the organization. For example, joint ventures, mergers & acquisitions etc. Strategic business unit or division level strategies are concerned with the issues of the unit or division, and functional strategies or operational strategies focus on functions like marketing, manufacturing, finance, production, etc.

In single businesses, distinctions between corporate level and strategic business level strategies do not exist. The most important aspect is that the strategies at these levels do not exist in isolation but co-exist to support each other for the organization’s success.

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