This paper provides a concise overview of several foundational business management concepts. It defines business-level strategy as the mid-level approach a firm uses to compete in a specific market, illustrated through Dell Computers. It then distinguishes entrepreneurial leadership from strategic leadership, comparing their time horizons and organizational roles. The paper also explains corporate-level portfolio strategy using Vivendi as an example, profiles three influential business figures — Michael Milken, Jack Welch, and Bill Gates — and concludes with a brief definition of corporate governance and its role in organizational performance.
Business-level strategy sits at the mid-level between corporate strategy — which deals with the general directions a company needs to evolve toward — and operational strategy. As such, it can be defined as dealing with "how a business competes successfully in a particular market."
In the case of Dell Computers, fulfilling its goal of being number one in the sector, the business-level strategy would comprise everything from studying the consumer profile and diversifying the product portfolio to best match that profile, to making strategic decisions about gaining a competitive advantage over rivals, and modifying technology accordingly.
Entrepreneurial leadership refers to "instilling the confidence to think, behave and act with entrepreneurship in the interests of fully realizing the intended purpose of the organization to the beneficial growth of all stakeholders involved." The entrepreneurial leader is very concrete and tactical: his or her goal is generally immediate — that of increasing value for the company.
The strategic leader, on the other hand, provides a vision as well as the suggested means by which that vision can be accomplished. Strategic leadership is a process designed for the long term, incorporating projects and directions that extend the company into the future.
These two types of leadership can be compared within the same organization. The CEO would generally fall into the strategic leadership category, providing strategic goals and the means by which they can be accomplished. A business-unit manager, by contrast, would be an entrepreneurial leader, with the immediate goal of making a profit within his or her unit.
Corporate-level strategy, also known as portfolio strategy, applies when a company operates several distinct businesses and must regulate and balance risk across them. Large companies operating in different sectors fit this description. A notable example is Vivendi, the French company that evolved from being a simple water utility into a conglomerate with businesses in cinema, music, and other industries.
"Profiles Milken, Jack Welch, and Bill Gates"
"Brief definition of corporate governance mechanisms"
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