I’m working on a management discussion question and need an explanation and answer to help me learn.
Clarify the relationships between, coporate strategy, business strategy and functional strategy.
reply : Relationship between Business, Corporate and Functional Strategies
Business strategy refers to the plans that a Company has put in place to achieve its goals within a specific business. Such strategies focus on aspects such as how the organization competes with its rival companies in the same industry (Seifzadeh & Rowe, 2019). On the other hand, corporate strategy addresses issues associated with how the parent Organization add value to its different business lines, the type of businesses to compete and how to diversify the business or enter other industries. Business and Corporate strategies can be related in that they influence and work together to make the corporation and the business successful (Seifzadeh & Rowe, 2019). For example, if a Candy Makers Corporate decision is to enter a confectionery market, then its business decision will be on how to compete and influence its operational plans on aspects such as manufacturing, distribution, price, and promotion.
Unlike Corporate and business strategy, functional strategy refers to the type of plan that is created by every functional area of a company, including sales, human resource, operations, and many others (Seifzadeh & Rowe, 2019). Corporate strategy can be associated with the functional strategy in that it usually entails the summary of plans laid by a larger organization on what goals and how it needs to achieve them. While the functional strategy is mainly focused on how to achieve a specific function of an organization.
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