Types of Strategic Management
Strategic management is the process through which managers undertake efforts to ensure long-term adaptation of their organization to its environment. However, there will be described about the types of strategic management for better understanding. This article is extended illustration of Strategic Management Five Types.
Types of Strategic Management:
There are given five types of strategic management. Such as:-
- Competitive Strategy
- Corporate Strategy
- Business Strategy
- Functional Strategy
- Operational Strategy
1. Competitive Strategy:
Competitive strategy aims at gaining competitive advantage in the marketplace against the competitors. Competitive strategy refers to a strategy that incorporates the impact of external environment along with the integrative concerns of internal environment of an organization. Competitive strategy consists of the business approaches and initiatives undertaken by a company to attract customers and to deliver superior value to them through fulfilling their expectations as well as to strengthen its market position.
2. Corporate Strategy:
Corporate strategy is formulated at the top level by the top management of a diversified company or group of company of its various businesses and product lines. A diversified company is popularly known as Group of Company such as Apple Inc.
3. Business Strategy:
Business strategy is formulated at the business unit level. It is popularly known as business unit strategy. This strategy emphasizes on the strengthening of company’s competitive position of products or services. Business strategy consists of plans of action adopted to use a company’s resources and distinctive competencies to gain competitive advantages in the market.
4. Functional Strategy:
Functional strategy refers to a strategy that emphasizes on a particular functional area of an organization. It is formulated to achieve some objectives of a business unite by maximizing resource productivity.
5. Operational Strategy:
Operating strategy is formulated at the operating units of an organization. A company may develop operating strategy as an instance for its sales territories. An operating strategy is formulated at the field level usually to achieve immediate objectives.
These are types of strategic management which created very helpful for business initiatives. So, we should choose the best one for getting benefit from business.