A business-level strategy is a plan that indicates how a division or business unit intends to compete against its rivals in a specific industry or market.
Business-level strategies are formulated to gain a competitive advantage by differentiating the firm's products or services, achieving lower costs, or focusing on a specific market segment. These strategies help guide the actions and decisions of a division or business unit in order to position the organization effectively in relation to its competitors.
A divisional structure is an organizational structure that groups departments or units based on similarities in product, customer, geography, or process. In a divisional structure, the organization is divided into self-contained divisions, each with its own set of functions and resources.
The degree to which decision-making authority is given to lower levels in an organization's hierarchy is referred to as decentralization.
Decentralization is a management principle that involves distributing decision-making power and authority to lower levels within an organization. In a decentralized structure, decision-making is delegated to various levels and units, allowing for greater autonomy and responsibility among employees throughout the organization.
Incentive pay calculated as a percentage of sales is commonly known as commissions.
Commissions are a form of variable compensation in which employees receive a portion of the sales revenue generated by their efforts. This type of incentive pay is particularly prevalent in sales-related roles, where employees are directly involved in generating sales and driving revenue for the organization.
Business strategy refers to the actions and decisions that a firm takes to achieve its goals, such as maximizing profits, gaining a competitive advantage, or expanding market share.
Business strategy involves formulating a plan of action that guides the organization's activities and resources to achieve its desired objectives. It considers various factors, including the external business environment, internal capabilities, market dynamics, and competition.
