Mission Statement
• A long-term purpose statement describes what a firm would like to do in the long
run and avoid at the same time.
• The firm specifies the businesses that it will operate.
• Either has no impact, improves, or decreases a firm’s performance.
Strategic Objectives
• The firm uses clear and measurable goals to determine if it accomplishes the
missions stated in the mission statement.
• High-quality objectives are usually easy to measure and track over time since its
tightly connected to the firm’s mission.
• Low-quality objectives are hard to measure since the goals cannot be quanitified.
External + Internal Analysis: SWOT ANALYSIS
External Analysis: helps a firm figure out the critical threats and opportunities in its
competitive environment. 4
a. Structure-Conduct-Performance (S-C-P Model)
b. General Environment 5
c. Porter’s 5 Forces
Internal Analysis: helps a firm figure out its internal strengths and weaknesses and
its resources and capabilities that enable them to gain competitive
advantages. 6
a. Resource-Based View (RBV) 7
b. VRIO Framework
5. LEVELS OF STRATEGY
Corporate Level Strategy:
Definition: The corporate level strategy is the highest level of strategy in an organization. It
defines the overall direction and high-level ideas for the entire organization.
Creators: Typically, top leadership (such as the CEO and senior management) formulates
corporate strategies.
Scope: Corporate strategies are broad and conceptual, spanning a 3-5 year period.
Focus: These strategies address questions like market positioning, diversification, mergers,
acquisitions, and global expansion.
Business Level Strategy:
Definition: Business level strategies focus on individual business units or divisions within the
organization.
Purpose: They guide how each business unit competes within its specific market segment.
Examples: Differentiation, cost leadership, niche focus, and competitive advantage strategies.
Application: Business level strategies align with corporate strategies while tailoring approaches
to specific markets and customer needs
Functional level :
Definition: Functional level strategies operate at the departmental or functional level (e.g.,
marketing, operations, and finance).
Objective: These strategies optimize specific functions to contribute to overall organizational
success.
Examples: Improving supply chain efficiency, enhancing customer service, or streamlining
production processes.
Alignment: Functional strategies should align with both corporate and business level strategies.
4. Operational Level Strategy:
Definition: Operational level strategies focus on day-to-day operations and execution.
Scope: They address tactical decisions related to processes, resources, and performance.
Examples: Inventory management, workforce scheduling, quality control, and cost reduction
initiatives.
Integration: Operational strategies must align with functional, business, and corporate strategies
