Corporate-level:

1
Strategy
Corporate-level A plan to use and develop
core competencies so that the organization
can not only protect and enlarge its existing
domain but can also expand into new domains The
responsibility of corporate-level managers and
the heads of divisions
2
Strategy
Business-level A plan to combine functional
core competencies in order to position the
organization so that it has a competitive
advantage in its domain The responsibility
of the top-management team (the CEO and vice
presidents)
3
Strategy
Functional-level A plan of action to
strengthen an organizations functional and
organizational resources, as well as its
coordination abilities, in order to create core
competencies The responsibility of functional
managers
4
Calvin Hobbes

• Know what your competition is doing, and adjust
  your strategy accordingly.

5
SWOT Analysis
Internal Environment Weaknesses Strengths
External Environment Threats Opportunities
Organizations Mission Corporate Goals Operative
Goals
6
A Few Good Men

• Do the structure and culture of the U.S. Marine
  Corps fit its current environment?
• What about the code unit, corps, God, country?
• Does the goal of flawless cooperation justify the
  use of harsh discipline?

7
Paradigm Entertainment

• How has environment affected Paradigms strategy
  and external ties?
• How have resource dependence and concern about
  transaction costs affected Paradigms strategy?
• How have the environment and strategy at Paradigm
  influenced the organizations internal structure
  and culture?

8
Structure, Culture, and Environment

• A Few Good Men versus Paradigm
• Why is a flat, decentralized structure and loose,
  freewheeling culture appropriate for Paradigm?
• Is there any group within U.S. military
  organizations that would benefit from an organic
  structure and playful culture like Paradigms?
  How? Why?

9
Typical Corporate Strategy
An organization that cannot create more value
in its current domain often tries to find a new
domain in which to compete. Diversificationprod
ucing new products for new marketsis one
avenue for expansion.
10
Typical Business-level Strategy

• Strategy at this level should
• Select the domain of the organization
• Use resources and abilities to manage
• its environment to protect and
• enlarge that domain

11
Characteristics of Organizational Structure
Associated with Business-Level Differentiation
and Low-Cost Strategies
12
Typical Functional-level Strategy

• To lead to competitive advantage,
• an organization should
• Perform functional activities at a cost
• lower than that of its rivals
• OR
• Perform functional activities in a way
• that clearly differentiates its product
• from those of its rivals