STRATEGIC LEVELS IN ORGANISATIONS
- A typical large organization is a multi divisional organisation that competes in several different businesses. It has separate self-contained divisions to manage each of these. there are three main levels of management: corporate, business, and functional. General managers are found at the first two of these levels, but their strategic roles differ depending on their sphere of responsibility.
- An organization is divided into a number of segments that work together to bring a particular product or service to the market. If a company provides several and/or different kinds of products or services, it often duplicates these functions and creates a series of self-contained divisions (each of which contain its own set of functions) to manage each different product or service.
- The general managers of these divisions then become responsible for their particular product line. The overriding concern of the divisional managers is healthy growth of their divisions. They are responsible for deciding how to create a competitive advantage and achieve higher profitability with the resources and capital they have at their disposal. Such divisions are called Strategic Business Units (SBUs).
- The corporate level of management consists of the chief executive Officer (ceO), other senior executives, the board of directors, and corporate staff.
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GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate
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