The four levels of strategy in business are…

1. Corporate Strategy
   • Corporate strategy is the highest level of strategy and involves decisions made by top management to determine the overall direction and scope of the entire organization. It focuses on long-term goals and objectives, such as market positioning, diversification, mergers and acquisitions, and resource allocation across different business units or divisions. Corporate strategy defines the overarching strategy for the organization as a whole and guides decision-making at lower levels.
2. Business Strategy
   • Business strategy is the level of strategy that focuses on how a specific business unit or division within the organization will compete in its chosen market or industry. It involves decisions related to competitive positioning, differentiation, target markets, product offerings, pricing, and marketing strategies. The business strategy aims to create a sustainable competitive advantage and achieve the organization’s strategic objectives within a particular business segment or market niche.
3. Functional Strategy
   • Functional strategy is concerned with the strategies formulated and implemented by individual functional areas or departments within the organization, such as marketing, finance, operations, human resources, and research and development. It involves aligning the activities and resources of each functional area with the overall goals and objectives of the organization. Functional strategies support the implementation of business strategies by addressing specific functional areas’ roles, responsibilities, and performance objectives.
4. Operational Strategy
   • Operational strategy is the lowest level of strategy and involves decisions related to the day-to-day operations and activities of the organization. It focuses on optimizing processes, systems, and resources to achieve efficiency, productivity, and quality in delivering products or services to customers. Operational strategy encompasses areas such as production planning, inventory management, supply chain logistics, customer service, and quality control. It aims to translate higher-level strategies into actionable plans and tactics that drive operational performance and contribute to achieving strategic objectives.

These four levels of strategy are interconnected and hierarchical, with each level influencing and informing the others. Effective strategic management involves aligning strategies at each level to ensure coherence, integration, and synergy across the organization. By addressing strategic issues at multiple levels, organizations can create a comprehensive framework for achieving their overall mission, vision, and goals while adapting to changes in the external environment and maximizing performance.