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Strategy & Management Levels

There are three management levels within an organisation. Each management level has a different function and makes decisions based on that function. The strategy for each level will also depend on the management level.




Who is part of this level?

What is their function?

What information do they use?

What are their responsibilities?

Top management

Directors, Board Members, Senior managers

Corporate Strategy

Strategic information to set corporate strategy and to assess how well the firm is doing against its targets as a whole

Long term corporate strategy (3 -5 years although the number of years will depend on the industry)

Decisions that affect the firm as a whole unit e.g. new product development, mergers, acquisitions, corporate finance

Middle management

Business Unit or Department Heads

Business Strategy

Tactical information
(information relating to their business units) e.g. number of sales, cash flow forecasts, inventory/stock levels

Medium term (around 1 year) planning and implementation for the business unit or department.

Marketing decisions and securing competitor advantage

Business unit plans have to reflect corporate strategy set by top management

Junior management

Supervisors, Team leaders

Operational or Functional Strategy

Information relating to an operational team or team members, e.g. rotas, complaints, team productivity.

Short term operational success.

Performance management of operational teams within the business unit (in line with business unit plans)

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