2. Single business firm
Business level Business Level Strategy
Human Functiona
Financial Marketing
R&D resource Level
Strategies strategies
strategies Strategy
3. Multi Business Firm
Corporate Level
Corporate strategy
office
Business
Business Business Business Business Level
1 2 3 4 strategy
4. Difference between CLS &BLS
S.No Business Level Strategy Corporate level strategy
Related with single business Unit Related with overall corporate
consisting of more than one
businesses
Aims to gain competitive Aims to gain Corporate advantage
advantage
Main strategies are Cost Main strategies are expansion,
leadership , differentiation stability and Retrehment
5. Corporate strategy
Corporate level strategy is related with
decisions of
1. overall direction and growth of corporate
2. Resource allocation among businesses
3. Transfer of resources
4. Managing and nurturing a group or
portfolio of businesses.
6. What a business does?
Customer Customer Alternative
group function technology
• Children • Nutrition • Advance
supplements food
processing
BUSINESS DEFINITION
7. In a multi business corporate there is a
challenge to serve so many customer groups
to satisfy respective customer functions by
use of various alternative technologies.
8. Corporate strategy deals with this challenge
of managing a range of businesses. How to
allocate resources between them, maximize
their contributions, and finally give them a
common direction – vision mission and
corporate objectives
9. Four Fundamental type of
corporate strategies s
Expansion strategy
Stability strategy
Retrenchment strategy
Combination strategy
10. Expansion strategy
Increasing the scope of business definition of
single or more than one businesses.
Example :- ADAG
Communications,Infrastructure,Financial
services, Entertainment, Power, Natural
resource, Petrochemical ,Health care ,BPO
11. Stability Strategy
Marginal change in business definition to
improve its performance.
An hospital brings new heart surgical
technology( change in technology)
New Horlics with new supplements.( change
in product or customer function)
A bank provides special treatment to its
industrial account holders(new approach to
customer group)
12. Retrenchment strategies
Total or partial withdrawal from one or more
businesses.
Only specialty treatment by a hospital instead
of general treatment earlier.
