## Levels of Strategy
Strategic decisions are made at different organisational levels, each with a distinct scope and purpose.
| Level | Who decides | Scope | Key question |
|---|---|---|---|
| Corporate | Board / Top Management | Entire organisation – portfolio, diversification, capital allocation | What businesses should we be in? |
| Business | SBU / Division heads | A single business unit competing in its market | How should we compete in this market? |
| Functional | Functional managers (Marketing, HR, Finance, Ops) | Day-to-day activities within one function | How do we execute the business strategy? |
### How to identify the correct level in a question
1. Does the decision involve adding or dropping a whole business / entering a new industry? → Corporate.
2. Does it target competitive advantage within one existing division? → Business.
3. Is it about cutting costs, improving a process, or managing a department? → Functional.
### Illustrative application (GEL case)
GEL's Board approved:
- Modernising the renewable energy division (₹7,000 cr + ₹1,500 cr supply chain)
- Entering the electric vehicle (EV) segment (₹8,000 cr)
Both decisions span multiple divisions and alter GEL's overall portfolio — classic Corporate-level strategy. They are not Business-level (which would mean choosing how to compete within renewable energy alone) and not Functional (which would be, say, reducing procurement lead times).
### Memory tip
> Corporate strategy = Which games to play.
> Business strategy = How to win the game.
> Functional strategy = How to make each move.