Awilo Holdings began as a small company that operated in the financial services sector of Ghana’s economy. Within the last ten years, the Board, which is chaired by the founder, Ms. Abigail Kyerewaa, has incrementally expanded into three more sectors of the economy, namely: telecommunications, logistics, and real estate. Currently a conglomerate, Awilo Holdings has four different companies in its portfolio and has its corporate head office located within the capital city, Accra.

Required:

Explain the different levels of corporate strategy as it relates to Awilo Holdings.

The different levels of strategic management as it relates to Awilo Holdings are as follows:

1. Corporate Level Strategy:

At the apex level of strategic management in Awilo Holdings is the corporate head office located in Accra. The corporate level of strategy, which is the responsibility of the Board of Directors of Awilo Holdings, is concerned with the overall purpose and scope of the organization and how value will be added to the different strategic business units (SBUs). In Awilo, strategy and strategic management at the corporate level impact the entire organization. The Board of Awilo has the responsibility of determining which industries the organization will be involved in, managing the expectations of stakeholders, and allocating or obtaining corporate resources both for the present and the future.

2. Business Level Strategy:

Business level strategy represents the second tier of strategic management. In Awilo Holdings, business level strategy refers to each of the particular and distinct combinations of products and markets dealt with by each strategic business unit – in this case, the individual firms that operate in the different sectors such as telecommunications, logistics, and real estate. The corporate managers of each business unit are responsible for translating the statements of direction and intent generated at the corporate level into concrete objectives and strategies for their respective business units. They determine how their firms will compete in the product-market arena.

3. Functional or Operational Level Strategy:

This level is concerned with how the component parts of an organization deliver effectively the corporate and business level strategies in terms of resources, processes, and people. The functional level represents the third tier or the bottom of the decision-making hierarchy. The functional level in Awilo Holdings would be the operational areas for each of the business units, such as finance and accounting, human resources, marketing and sales, and research and development functions. The managers at the functional areas develop annual objectives and short-term strategies to implement the strategic plans of their respective business units, focusing on efficiency and doing things right.