164  Blockchain

• Allocation of budget: None of the organisations have an infinite bud-

get to spend on all the priorities. One of the goals of corporate strategy

is to allocate budget to attain priorities that have a high confidence

level to achieve the vision and mission of the company. This involves

allocation of human resources and capital in alignment with aims and

objectives of the organisation.

• Set up priorities for the organisation strategic goals: One of the goals

of the corporate strategy is to set up priorities for the organisation.

The priorities should align to the delivery of the strategic goals of

the organisation. This involves strategic trade-off of the priorities

as part of corporate strategic planning exercise.

Business strategy

Business strategy sets up the strategy for a business unit that is aligned to

organisational corporate strategy. Business strategy is aligned to the busi-

ness unit level to achieve its goals aligned to corporate strategy objectives

and ultimately vision of the organisation. Business strategy goals are often

set as per their capabilities and market competition with an ultimate goal

for them to achieve competitive advantages.

Functional strategy

Functional strategy is the most granular level of strategy as it is aligned

to the functional departments of the organisation. Aims and objectives of

the functional strategy are derived from business and corporate strategy’s

vision and mission, with an aim to execute the lower-level plans that can

assist in attaining the strategic goals of an organisation. Corporate and

business strategy objectives are turned into executable functional targets to

attain the vision and mission of the organisation (Figure 6.1).

Types of strategies

In the above section, we have gone through the level of strategies. This sec-

tion is all about types of strategies.

Michael Porter’s generic strategy

Generic strategy

Michael Porter in 1985 in his book Competitive Advantage: Creating and

Sustaining Superior Performance laid out generic strategies. Michel Porter

disrupted the strategy models to create value addition for the organisation

through competitive advantages (Figure 6.2).