Strategy is the determination of long term goals and objectives. It is the adoption of a course of action to achieve set goals and objectives by allocating resources necessary to carry out these activities. Having a strategy in place provides a framework for managerial decisions.
There are four types of strategy as follows:
1. Corporate strategy: It is a strategy developed by the top management of organization. Corporate level strategy gives direction to the overall firm. It defines which are the businesses where the organization will operate.
2. Business level strategy: Business level strategy seeks answer to the question how should we compete in in each of our businesses.
3. Functional strategy: A strategy that identifies the broad activities that each department will pursue in order to accomplish its goals.
4. Competitive strategy: Here we identify, build and strengthen our long term competitive position of each business in its market place.