What are the relationships among corporatelevel business uni

Solution

ANSWER:-

Today businesses are not operating in isolated environment so that a simple plan or budget can lead them to desired goals. Infact such environment both internal and external is highly turbulent in nature. Therefore beyond planning business units need to formulate strategies to cope with these dynamic factors.

Nature and scope of strategy widely varies with levels of managerial functions. Informational needs for formulation and control of such strategies varies according to the levels.

?Corporate level strategies are formulated and implemented by top level management. They include issues beyond the business and mostly deals with external opportunities and threats.

?Business level strategies are formulated and implemented by middle level management. They are subordinate to the corporate level strategies so that they translate the vision and mission of the entity into action plan.

?Functional level strategies are business level strategies decomposed to the respective functions of the business i.e marketing, production, research and development, human resources etc

Thus the three levels of strategy are interdependent an each other. It is not always true to say that there will be top to bottom approach. There can also be bottom to top approach. Especially when there are high resource constraint in the entity so that business level and corporate levels can’t be independent.