Decisions made at the highest level, focusing on the overall scope and direction of the corporation. Corporate strategy is about creating value for the organization as a whole, considering the diverse interests of stakeholders such as shareholders, employees, customers, and the wider community.

This includes defining an organization’s overall goals and its core purpose; deciding on the business units or product lines the company will operate, including acquisitions, divestitures, and new ventures; determining how resources (capital, personnel, etc.) are distributed across the organization to maximize returns; and identifying and mitigating risks at the organizational level, including financial risks, market risks, and operational risks.

Business strategy operates at a level below corporate strategy and is concerned with how a company competes in a particular market or industry. It’s about crafting competitive advantages and positioning within the market to achieve superior performance. Business strategy focuses on how to win in the specific markets in which the company operates, leveraging its strengths to exploit opportunities and mitigate threats.

This includes analyzing rivals and the competitive dynamics within the industry; determining how to position the company and its products in the market to differentiate from competitors; identifying pathways for growth, such as market penetration, market development, product development, and diversification; defining the unique value that the company offers to its customers through its products or services.

Focuses on specific functions within a business, such as marketing, HR, or finance, aligning them to support the overall business strategy. the most detailed level of strategy, it supports the higher-level corporate and business strategies.

This includes optimizing operational processes and workflows to maximize efficiency and effectiveness; ensuring that the functional areas are utilizing resources in alignment with the broader strategic objectives; setting specific, measurable goals for each department that contribute to the business and corporate strategies; and developing and retaining the necessary talent and skills within each functional area to execute the strategy effectively.