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.
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.
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.
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.
