Strategic Management - Different Types
Business level strategies include the plans or methods a firm may use to conduct numerous functions in operating their business. More business strategies are required in case of large businesses since more departments with different business functions exist in them. However, small businesses may also adopt these strategies. Business-level strategies are usually used to provide guidelines for owners, managers and employees. The five types of business level strategies are −
Coordinating Unit Activities
The coordination of all different individual unit activities found in a business is a common strategy. These unit activities may be differentiated by departments, sections of the department and individual job positions.
The coordination is usually done by a manager or supervisor. The manager is responsible to bring employees on the same platform and helping these individuals on accomplishing the various goals or objectives of the company. Allocating resources may also be a prime duty of the manager.
Utilizing Human Resources
Utilization of the available human resources and the overall economy is a must for success. Some form of human labor to fulfil business goals and objectives is always needed. Companies usually develop a business-level strategy to make sure that the organization has sufficient employees to produce specific goods or services.
This business-level strategy is also meant to ensure that the right type of human labor is acquired. An analysis to see if skilled or unskilled labor is required to complete business functions is a common part of the strategy.
Developing Distinctive Advantages
Distinctive core competencies or competitive advantages are essential for success of a company. Core competencies represent the activities or abilities that a company holds for better output than another company. These strategies may include acquiring economic sources cheaper than others, more efficient and effective production, unique goods or services and a cost-effective supply chain.
Identifying Market Niches
Market niche identification usually includes economic analysis and finding a specific consumer demand that is unmet or where there is insufficient supply to fill the demand. Other niches may include modifying products, targeting specific demographic groups, etc.
Monitoring Product Strategies
Review of business level strategies involved in the operation of an organization is a must. Review of the acquisition process, the equipment, and the business facilities as well as administrative costs for sufficient rate of return are required to stay on track. Reviewing business level strategies help to remain flexible in business and make necessary changes as and when needed.
