Goold and Campbell identified three 'styles of strategic management', looking at ways in which control can be divided between senior management and individual business units.
- Strategic planning senior management work closely with particular business unit managers to develop plans for their business units. Guided by corporate strategy, individual business units then set objectives and plan implementation. The aim of this approach is to achieve maximum competitive advantage within each business unit. The danger of this approach is that if the holding company is the 'master planner' it takes away much of the strategic decision making of divisional managers who may know the market and challenges better.
- Strategic control senior management decentralise development of planned plans to business unit managers. Senior management set group financial and strategic objectives but let the business units set plans and senior management review them for acceptability. The danger of bottom up approaches to strategic planning include the lengthy consultation and negotiation to implement plans. The bureaucracy of reviewing and controlling plans often slows down decision making.
- Financial control: Control of strategy by a budget (financial) process e.g. financial controls and profit targets which business units are essential to adhere to. Senior management provide little direction and rarely review strategic plans of business units. Senior management therefore a similar role to a bank or other lending institution.