Traditional Culture Encyclopedia - Traditional culture - How many levels of business strategy are there? Cite each level of strategic decision making?
How many levels of business strategy are there? Cite each level of strategic decision making?
Generally speaking, corporate strategy is not a single, but a hierarchy, the size of the enterprise is different, corporate strategy level will be different.
The specific content of the corporate strategy level includes the following three aspects:
1, corporate strategy
The object of study of corporate strategy is a relatively independent business or business units combined into a corporate whole. Corporate strategy is an enterprise's overall strategic outline, is the top management of the enterprise to guide and control all the behavior of the enterprise's highest program of action. The main content of corporate strategy includes the basic logical relationship or the basic reason for the existence of the enterprise, is a series of the most basic factors of the enterprise's strategic decision-making. In a nutshell, corporate strategy mainly emphasizes two aspects: one is "what business we should do", that is, to determine the enterprise's mission and tasks, products and market areas; the second is "how do we manage these businesses", that is, how to allocate resources among different strategic business units and how to take action. The second is "how do we manage these businesses", that is, how to allocate resources among different strategic units of the enterprise and what direction of growth to take.
2, competitive strategy
Competitive strategy, also known as business strategy, or branch strategy, is under the guidance of the corporate strategy of the enterprise, each strategic unit of the departmental strategy, is a sub-strategy under the corporate strategy. Among the four constituent elements of enterprise strategy, the competition strategy mainly emphasizes the two factors of business scope and resource allocation, and mainly studies the competition of products and services in the market. Its purpose from the external view of the enterprise is to establish a certain competitive advantage, that is, in a particular product and market area to obtain the ability; from the internal view of the enterprise is to obtain a certain synergistic effect, that is, the overall arrangement and coordination of a variety of production, finance, research and development, marketing and other business activities within the enterprise.
3. Functional strategy
Functional strategy is to carry out, implement and support the company's strategy and competitive strategy in the enterprise's specific functional management areas of strategy. Functional strategy can be generally categorized into marketing strategy, personnel strategy, financial strategy, production strategy, research and development strategy, public relations strategy and so on. Compared with corporate strategy and competitive strategy, functional strategy is more detailed, specific and potentially operational. In fact, functional strategy is a "bridge" between corporate strategy, competitive strategy and the actual achievement of desired strategic goals.
Please explain which three levels of corporate strategy, and for the last two levels of three specific strategic options, what is the hierarchy of corporate strategyHierarchy of corporate business strategy
(1) Overall business strategy - the first level (also known as the company or head office-level business strategy)
Overall strategy: refers to the internal and external environment of the enterprise on the basis of in-depth investigation and research, the market demand, competition, resource supply, enterprise strength, national policy, social demand and other major factors for comprehensive analysis, determined by the overall and guide the overall development of the enterprise and the long-term development of the plan and strategy.
Classification:
A. Business situation in which the enterprise is located (developmental; stable; austerity)
B. Business field (specialization; diversification)
C. The subjective and objective conditions for the enterprise to formulate business strategy are different (conservative; reliable; risky)
D. The enterprise has different ways of resource allocation and growth (rough. intensive)
E. The enterprise has different ways of resource allocation and growth; Intensification)
(2) business unit strategy - the second level
Business unit strategy: business unit under the guidance of the overall strategy of the head office or group companies, in order to achieve the development goals of the head office, engaged in the development of a business undertaking to make long-term planning and strategy.
(3) Functional strategy - the third level
Functional strategy: also known as sub-strategy, refers to the overall strategy to ensure the realization of the corporate strategy and business unit strategy, the use of a variety of professional functions, so that the enterprise to carry out business activities to adapt to the internal and external environmental requirements of the formulation of the long-term planning and strategy.
(XII) the content of the enterprise business strategy system
(1) strategic thinking (commander, soul, guidance)
(2) strategic objectives (the core of the strategy)
(3) strategic focus
(4) strategic approach (comprehensive, single, purposeful, and instrumental)
(5) strategic stage
(6) strategic countermeasures (also known as business strategy)
How many levels of business management strategyGenerally divided into three
For example, how many levels of business strategy can be divided into?There should be three levels of strategy, namely, corporate level, business level and executive level. Each level has three elements: direction and goals, policies and constraints, and plans and targets.
The corporate level is the development strategy of the whole company, such as creating a strategy of stability and development;
The business-level strategy mainly determines how to achieve sustainable competitive advantage in the market, including cost leadership strategy, differentiation strategy, etc.;
The executive-level strategy serves for the business-level and corporate-level strategy, and it is a guarantee that the strategy will be effectively implemented.
What is corporate strategic decision-makingWhat is strategic decision-making
Strategic decision-making, is to solve the overall, long-term, strategic and major decision-making issues of decision-making. Generally made by high-level decision makers.
Strategic decision-making is the key to the success or failure of business operations, which is related to the survival and development of enterprises. Correct decision-making can make the enterprise along the right direction, improve competitiveness and adapt to the environment, and achieve good economic benefits. On the contrary, wrong decision-making will bring great losses to the enterprise, and even lead to bankruptcy.
Strategic decision-making is an extremely important part of strategic management, which plays a pivotal role. Strategic decision-making is based on the decision-making information provided in the strategic analysis stage, including industry opportunities, competitive landscape, corporate capabilities and other aspects. Strategic decision-making should synthesize the information to determine the corporate strategy and related programs. Strategy implementation is a more detailed decomposition of the strategic deployment of the realization of the intent and goals of strategic decision-making.
The three elements of strategic decision-making
The three elements of strategic decision-making refer to the three factors affecting strategic decision-making involved in the process of strategy formulation, namely, the strategic context, the strategic content, and the strategic process.
The strategic context refers to the environment in which the strategy is implemented and developed;
The strategic content refers to the main activities included in the strategic decision;
The strategic process refers to how the activities are linked when the strategy is confronted with an environment rich in change;
The three elements of the strategic context, the strategic content, and the strategic process **** together determine a strategic decision.
Traditional strategic decision-making models
The main ones are: the SWOT model, in addition to the SWOT model, there are other models that can be used for both strategic analysis and strategic decision-making, such as the Boston Matrix, GE matrix.
Steps of strategic decision-making
The strategic decision-making stage can be divided into three steps: strategic positioning decision-making, strategic indicator decision-making, and business strategy decision-making.
1, strategic positioning decision
The first task of the strategic decision-making stage is strategic positioning, equivalent to the development of "what to do" of the company's strategy, focusing on the market scope of the S positioning and product category P positioning, the two are closely linked to the formation of a certain combination of SP strategic units. Strategic positioning based on the strategic analysis stage of the analysis of the different SP strategic units of the industry profitability change rules, the competitive landscape and the enterprise's own capabilities.
2, strategic indicators of decision-making
After the decision on strategic positioning of the enterprise, the enterprise needs to determine the strategic indicators of the SP strategic unit of the target value, focusing on net profit indicators, corporate capital return target, capital investment targets, market share targets, capital output targets.
Enterprises need to conduct a comprehensive analysis of different SP strategic unit related indicators, including the proportion of different strategic units of net profit, the proportion of the amount of capital, relative competitiveness, etc., in order to optimize the adjustment of the strategic objectives of each strategic unit, and to promote the optimization of the overall operation.
Enterprises are often subject to the constraints of their own resources when making decisions on strategic indicators, to weigh the opportunities and resource inputs of different strategic units, to consider the channels of access to resources and the strategy of inputs, and to analyze the type of market, such as large investments, but also to consider their own decision-making on the impact of the industry as a whole.
3, business strategy decision
In the strategic positioning decision and strategic indicators based on the decision, the enterprise needs to develop to ensure that the indicators to achieve the relevant business strategy. The focus includes business strategies to improve the return on capital, such as cost leadership strategy, quality leadership strategy; business strategies to improve the amount of capital that can be invested in the business strategy, such as financing strategy, mergers and acquisitions strategy, etc.; business strategies to improve market share, such as the low price strategy, channel strategy, etc.; to improve the capital output of the business strategy, such as the lean production strategy, process reengineering strategy, information technology strategy, etc.. The goal of improving net profit depends on the development and implementation of each of the above business strategies.
Business strategy decision-making requires professional analysis of business functions, which is different from the strategic analysis in the strategic management cycle, and the content of the analysis should be broad and flexible. Business strategy decision-making should have its own goals and action programs, the implementation of business strategy to develop specific measures to protect may not be included in the content of business strategy decision-making, can be used as the content of the strategic implementation phase.
Comparison of typical ideas of strategic decision-making
The idea of strategic decision-making refers to the starting point of the enterprise in strategic decision-making, which is very close to the strategic analysis of many types of strategic decision-making ideas, and selected a few important briefly analyzed as follows.
1, resource-oriented
There are many different types of enterprise resources, resource-oriented decision-making ideas, that is, first look at what resources the enterprise has, and then analyze the resources can be invested in the industry's opportunities, and thus decision-making. If the enterprise has a lot of idle land, it will often seek the development and utilization of land resources, if the real estate opportunity is good, will choose to enter the real estate industry. Enterprises have customer resources, often for customers to provide other types of products or services, in order to obtain more money-making opportunities.
Resource-oriented decision-making ideas, the advantage of good use of corporate resources, but the disadvantage is that companies are easy to bloat fat, will be too scattered resources and the main business is not clear and not strong, so that the enterprise in the various fronts of the competition is not favorable, and even lead to the premature death of the enterprise. Resource-oriented decision-making needs to really recognize the enterprise's resources, otherwise if you overestimate your own resources and ability to make decisions often appear to be difficult to control the situation. Currently, people's attention to TCL's internationalization strategy is very high, the internationalization is often a disadvantage for a variety of reasons, the overestimation of their own international operation ability and inadequate preparation is an important reason for TCL's current passive.
2, opportunity-oriented
Opportunity-oriented decision-making ideas, that is, first look at external opportunities, and then organize resources to seize the opportunity, the basis of its success depends on the accurate judgment of the opportunity. At the beginning of the network economy, network venture capital is very hot, and it has become the most popular industry of opportunity-oriented decision-making, and a few successful elites have been born out of the many failures, and the opportunity-oriented thinking has made a number of ordinary people become extraordinary.
The disadvantage of opportunity-oriented decision-making is often the lack of resources, sometimes often can lose the first time, but can not afford to lose the second time. Opportunity-oriented some enterprises are what opportunities want to catch, the result is often what are not firmly or even did not catch. Sometimes can not see the opportunity and fear of missing, the result is that the enterprise resources are too dispersed, it is difficult to form a strong main business, the competition is a supporting role in the field. It seems that the opportunity to grasp the degree of supremacy type, can not ignore the opportunity, but also can not be what industry are shallow.
3, compare with the wind type
Climbing to follow the wind type of decision-making ideas in a large number of Chinese enterprises, the current state-owned enterprises and private enterprises in a large number of existing. Peer other enterprises to engage in diversification on what products to make money, they do not do a serious analysis of the situation according to the new period, speculative follow the wind into the results are often contrary to their wishes. In previous years, such as home appliance companies set off a car movement, some private enterprises in the steelmaking impulse, the result is that many companies pay a painful price for this decision.
Some companies operating behavior in the past by the outside world or the influence of peers, such as other companies are engaged in the internationalization and diversification, they do not keep up with the trend for fear of being seen as outdated, and the result is not based on their own reality, but also chose the internationalization and diversification. As a result, other people can do things they are not capable of doing successfully, so that the enterprise into the internationalization or diversification of the passive.
The key to the failure of the climbing and following the wind type is that they are not good at analyzing and grasping the opportunity. If you can really see the opportunity, slower than others is also a kind of wisdom, other companies may be martyrs, their own enterprises to become heroes. Such as the analysis of some of the emerging technology opportunities to grasp, such as the VCD Wan Yan is known as the pioneer, and other followers to become a latecomer.
4, forced helpless type
Forced helpless type is often caused by a variety of reasons. Some companies do not care about external changes, only know how to pull down the car do not know how to look up the road, the result is that when the industry is in decline, enterprises are forced to think of a way out. Sometimes forced to be helpless is the enterprise by a variety of circumstances, it is difficult to make decisions, such as exit costs are too high, the enterprise has to choose to stay down and wait for the turn of the tide.
Sometimes external opportunities who can not say, enterprises have to bet on the fate, not bet on the transformation of the helpless to catch up. Such as four or five years ago, the color TV industry began the traditional tube color TV out of the problem, flat panel color TV is the trend, but how long is the protagonist, enterprises are difficult to say clear. The famous color TV enterprise Changhong thinks that this transition period will take about ten years or so, the result of resource allocation on heavy back projection and light flat panel, the result of flat panel TV three years after the rapid growth of back projection products, a moment of brilliance but the rapid decline of the enterprise was forced to adjust the direction of the resources focused on turning to flat panel color TV. In contrast, Hisense identified the prospect of flat-panel TVs earlier, although it had tried to back-projection and for some reason gave up back-projection earlier, and invested all its efforts in flat-panel color TVs, resulting in flat-panel industry opportunities as expected, Hisense became a big winner in the upgrading of color TVs.
In the four typical ideas of strategic decision-making, resource-oriented and opportunity-oriented have their own advantages and disadvantages, and enterprises should combine with their own flexible application. The comparison with the wind type and forced to helpless type are enterprises should be reflected on to improve.
Strategic management of enterprises
The three levels of strategic management of enterprises are: overall strategy; business strategy, functional strategy.
1, the overall level of strategy
The overall level of strategy, also known as corporate strategy, is the highest level of strategy, is the overall strategic outline of the enterprise.
2, business layer strategy
Business layer strategy is also known as business unit strategy. Modern large enterprises are generally engaged in a variety of business operations, or the production of a variety of different products, there are a number of relatively independent products or market sectors, these departments that is the business unit or strategic business unit.
3, functional level strategy
Functional level strategy is to implement, implement and support the company's strategy and business strategy in the enterprise's specific functional areas of management strategy.
Functional strategy is mainly to answer the question of how to effectively carry out the work of a function of the relevant departments, focusing on improving the efficiency of the use of corporate resources, so that the efficiency of the use of corporate resources is maximized. Its content is more detailed than the business strategy, specific, and its role is to make the overall strategy and business strategy of the content of the specific implementation, and make the functions of the question of coordination, usually including marketing strategy, personnel strategy, financial strategy, production strategy, research and development strategy and other aspects.
Company-level strategy, business-level strategy and functional-level strategy together constitute the enterprise strategy system. Inside the enterprise, enterprise strategy management between the various levels is interlinked, mutual cooperation. Each level of enterprise strategy for the next level of strategy to provide direction, and constitute the next level of strategic environment; each level of strategy for the realization of the upper level of strategic objectives to provide protection and support. Therefore, the enterprise to achieve its overall strategic objectives, must be the three levels of strategy effectively combined.
Learning Strategy, Question 005: What are the levels of corporate strategic management?Corporate strategic management can include three levels: corporate strategy, business strategy, and functional strategy 1. Solve two aspects of the problem: First, what business should we do? That is, to determine the nature and purpose of the enterprise, to determine the scope and focus of the enterprise's activities; the second is how we go to develop these businesses? That is, to determine the scale, proportion and order of resource allocation. Performance: (1) business mission. Which business areas to engage in, which consumers to serve, and what business areas to develop. (2) Division of strategic business units (SBUs) and development planning for strategic businesses. (3) Strategic objectives of key SBUs.2. Business strategy. Focuses on improving the competitive position of products and services offered by an SBU in the industry in which it operates, or in a particular market segment. Externally, the business strategy is - what competitive advantage to develop? Internally, the business strategy is - what competitive capabilities to build? Performance: (1) How will the business mission be carried out? (2) Analysis of opportunities and threats of business development (3) Analysis of inherent conditions of business development (4) Overall objectives and requirements of business development (5) Determination of strategic focus, strategic stages and main strategic measures of business. 3. Functional strategy. The focus is to improve the efficiency of the use of corporate resources, so that the efficiency of the use of corporate resources is maximized. Can be divided into marketing strategy, personnel strategy, financial strategy, production strategy, research and development strategy, public relations strategy. Performance: (1) how to implement the overall objectives of business development (2) the argumentation of functional objectives and their breakdown. Such as development goals - scale, capacity, etc.; product goals; quality goals; market goals - market share, growth rate; staff quality goals; management modernization goals, etc. (3) Determine the strategic focus of the functional strategy, the strategic stage and the main strategic measures ( (4) risk analysis and strain analysis in the implementation of the strategy -- "Enterprise Strategic Management", Wang Fanghua, Fudan University Press
Setting strategy, decision-making is the development of the enterprise which level to doThe specific content of the strategic level of enterprise management includes the following three aspects:
1, corporate strategy
The object of study of corporate strategy is a combination of some relatively independent business or business units into the enterprise as a whole. Corporate strategy is an enterprise's overall strategic outline, is the top management of the enterprise to guide and control all the behavior of the enterprise's highest program of action. The main content of corporate strategy includes the basic logical relationship or the basic reason for the existence of the enterprise, is a series of the most basic factors of the enterprise's strategic decision-making. In a nutshell, corporate strategy mainly emphasizes two aspects: one is "what business we should do", that is, to determine the enterprise's mission and tasks, products and market areas; the second is "how do we manage these businesses", that is, how to allocate resources among different strategic business units and how to take action. The second is "how do we manage these businesses", that is, how to allocate resources among different strategic units of the enterprise and what direction of growth to take.
2, competitive strategy
Competitive strategy, also known as business strategy, or branch strategy, is under the guidance of the corporate strategy of the enterprise, each strategic unit of the departmental strategy, is a sub-strategy under the corporate strategy. Among the four constituent elements of enterprise strategy, the competition strategy mainly emphasizes the two factors of business scope and resource allocation, and mainly studies the competition of products and services in the market. Its purpose from the external view of the enterprise is to establish a certain competitive advantage, that is, in a particular product and market area to obtain the ability; from the internal view of the enterprise is to obtain a certain synergistic effect, that is, the overall arrangement and coordination of a variety of production, finance, research and development, marketing and other business activities within the enterprise.
3. Functional strategy
Functional strategy is to carry out, implement and support the company's strategy and competitive strategy in the enterprise's specific functional management areas of strategy. Functional strategy can be generally categorized into marketing strategy, personnel strategy, financial strategy, production strategy, research and development strategy, public relations strategy and so on. Compared with corporate strategy and competitive strategy, functional strategy is more detailed, specific and potentially operational. In fact, functional strategy is a "bridge" between corporate strategy, competitive strategy and the actual achievement of the desired strategic objectives.
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