Have you ever wondered why Apple remains a leader in the electronics industry while Nokia failed and left the market? The reason behind that is the efficiency of business planning. Read this article to get great examples of the three levels of organizational planning and understand their essence!
🔝 Top-11 Examples of the Three Levels of Organizational Planning
- Activities Management for Achieving Results
- Hong Kong Greenking Food Stuff Co Ltd.: Case Study
- The Buncefield Incident: Command Management
- Management Concept: Keys That Drive to Success
- McCafe Comprehensive Company Analysis
- Food and Beverages at Southwestern University Football Games
- Target Corporation and the Four Management Functions
- Integrated Supply Chain in Business
- Generic Types of Business Processes and IT Systems
- HRM Practices and Their Role in Organizations
- Body of Knowledge of Internet of Things
🤔 What Are the Three Levels of Business Planning?
Strategic planning is the core of business prosperity. That’s why choosing a proper corporate strategy is essential for a company’s success. There are three common business planning levels:
- Corporate
- Business
- Department (also known as functional)
The major difference between the 3 levels of planning in management is the stage at which they operate in a firm. Business planning levels enable business leaders to set strategic goals from the highest corporate level to the bottom functional level. For organizations, three levels of business planning are used to set up accountability and labor division.
🚀 3 Levels of Planning in Management Explained
As we have already figured out, decision-making within any firm takes place on three levels. Now, let’s take a closer look at each of them!
Corporate Level
The corporate-level strategy provides overall management direction for a company and aims at achieving the firm’s main goal. On the corporate level, the decisions are usually made by senior leaders, such as the CEO or the Board of Directors. This type of strategic planning involves a robust industry analysis that helps gain a competitive advantage in multiple industries and increase a firm’s market share.
Business Level
While the corporate level aims to establish a firm’s reputation in multiple industries, the business level focuses on gaining a competitive advantage in a specific market. This strategic level analyzes a company’s current position in an industry. Besides, the business-level strategy allows searching for ways to strengthen an organization’s position in the market.
Department Level
This type of strategic planning gives power to the hands of department managers. Regardless of whether it’s the marketing, R&D, sales, IT, or finance department, each of them works towards the overall empowerment of a firm. So, by emphasizing the functional team of each department, business leaders achieve the organization’s overall goals.
🏆 Examples of the Three Levels of Organizational Planning
Now, let’s see how real businesses plan their operations in accordance with their organizational levels. Find some excellent examples below!
Corporate Level Strategy Example
Amazon is a primary example of an organization with a solid corporate strategy. It is a giant that functions in diverse industries, such as e-commerce, AI, cloud computing, consumer electronics, and more. So, Amazon aims to gain a competitive advantage in multiple industries and strengthen the company’s position across the markets.
Business Level Strategy Example
Apple is a great example of a firm that excels at business-level strategy. How do iPhones remain the market leaders even though there are plenty of smartphones with more affordable prices? Well, that’s because Apple focuses specifically on the consumer electronics industry. The company works directly on brand recognition which helps to gain a competitive advantage in the industry.
Department Level Strategy Example
Starbucks has a well-developed department-level strategy. In this company, heads of financial, marketing, sales, and other departments control their operations to ensure Starbucks’ reputation and increase its market share. Working in close cooperation, the department managers reach the general aim of the firm.
Thank you for visiting our webpage! Don’t forget to share it with your friends, and check out the examples below!