What is a business-level strategy?
A business-level strategy refers to the strategy for how the firm will compete in a particular business segment. It is the strategy that holds together the business segment together, indicating how to compete.
What is a functional-level strategy?
Functional-level strategies are strategies for how specific functional areas of the firm will operate. Some examples of functional-level strategies include:
- R&D strategy
- Manufacturing strategy
- Operations strategy
- Marketing strategy
The importance of alignment between business-level and functional level strategies
While business-level strategies and functional-level strategies are different levels of the firm’s strategy, it is important that they are each aligned with one another. The functional strategies are how the business-level strategy is enacted, and thus it is important that the functional strategies are all consistent with one another and the broader business-level strategy that the firm is pursuing.
Related Articles
