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Strategic Management At Each Management Level



Strategy & Management Levels

There are three management levels within an organisation. Each management level has a different function and makes decisions based on that function. The strategy for each level will also depend on the management level.

Level Level Members What is Their Function? What Information Do They Use? Responsibilities
Top management Directors, Board Members, Senior managers

Corporate Strategy Strategic information to set corporate strategy and to assess how well the firm is doing against its targets as a whole

Long term corporate strategy (3 -5 years although the number of years will depend on the industry)

Decisions that affect the firm as a whole unit e.g. new product development, mergers, acquisitions, corporate finance

Middle management Business Unit or Department Heads Business Strategy Tactical information
(information relating to their business units) e.g. number of sales, cash flow forecasts, inventory/stock levels

Medium term (around 1 year) planning and implementation for the business unit or department

Marketing decisions and securing competitor advantage

Business unit plans have to reflect corporate strategy set by top management

Junior management Supervisors, Team leaders Operational or Functional Strategy Information relating to an operational team or team members, e.g. rotas, complaints, team productivity.

Short term operational success

Performance management of operational teams within the business unit (in line with business unit plans)

Continue to Strategic Management Advantages And Disadvantages

Our next article examines the advantages and disadvantages of strategic management through an assessment of macro economic factors, micro economic factors and a SMART review.

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