Corporate Strategy: It is concerned with the overall direction and scope of an organization and how value will be added to the different business units of the organization. This could include issues of geographical coverage, diversity of products/services or business units, and how resources are to be allocated between the different units if organization. The top management plays an important role in determining how the organization should be structured, targets are set, performances are reviewed and values added to the business.
Business Strategy: Business level strategy is a second level strategy and is about how to compete successfully in different markets. The apprehensions are thus about advantages over competitors; new opportunities in markets; products or services strategies and how to meet customer needs towards long term profitability. While corporate strategy involves decisions about the organization as a whole, business strategy involves decisions about the strategic business unit therein.
Functional Strategy: Functional strategy is detailed action plan undertaken in a particular functional area to achieve short term objectives. They identify specific and immediate actions that must be undertaken in functional areas such as operations, finance, marketing, human resources or manufacturing. Within the framework of business and corporate level strategies, each business function needs to be undertaken towards building a sustainable competitive advantage.
Operational Strategy: It is the fourth level strategy and is concerned with how the organizational systems deliver effectively in terms of resources, processes and people like production, scheduling, promotion, pricing, or people. Winning business strategies depend largely on decisions that are taken at operational level. The assimilation of operational and strategic decisions is therefore of great importance.