Business strategy can be understood as the course of action or set of decisions that assist entrepreneurs in achieving specific business objectives. It is the master plan that management uses to ensure a competitive position in the market, carry out its operations, satisfy customers and achieve the desired goals of the business.
In a business, it is the broad-range outline of the desired image, direction and destiny of the organization. It is a scheme of corporate intention and action, which are carefully planned and flexibly designed with the purpose of:
- Achieve effectiveness,
- Perceive and take advantage of opportunities,
- Mobilize resources,
- Secure a position of advantage,
- Face challenges and threats,
- Direct efforts and behavior and
- Gain direction over situations.
A business strategy is a set of competitive moves and actions that businesses use to attract customers, compete successfully, strengthen performance, and achieve organizational objectives. It outlines the way a business should be run to achieve desired objectives.
Business strategy equips the highest ranks of management with an integrated structure to discover, analyze and exploit beneficial opportunities, to sense and confront potential threats, to make optimal use of resources and forces, and to make a counter- balance against weaknesses.
Levels of business strategy.
1.Corporate level strategy
Corporate-level strategy is a comprehensive, integrated, wide-ranging, action-oriented plan that is formulated by the highest ranks of the organization. It is used to ensure business lines, expansion and growth, acquisitions and mergers, diversification, integration, new areas of investment, divestment, among others.
2. Business level strategy
Strategies that relate to a particular business are known as business-level strategies. They are developed by general administrators, who transform the vision and mission into concrete strategies. It’s like a project or blueprint for the entire business.
3. Functional level strategy
Developed by first-line managers or supervisors, functional-level strategy involves decision-making at an operational level concerning areas such as marketing, production, human resources, research and development, finance, among others.
In business there is always a need for multiple strategies at various levels, since a single strategy is not only inadequate but improper as well. Therefore, a typical business structure always has the three levels of strategy.
Nature of business strategy
A business strategy is a combination of proactive actions on the part of management with the purpose of improving the company’s market position and overall performance and the reactions to be taken in the face of unexpected developments and new market conditions.
The main part of the company’s present strategy is a result of previously initiated actions and current business approaches, but when market conditions take a direction that is not anticipated, the company requires a strategic reaction to face contingencies. Therefore, for unforeseen developments, a part of the business strategy is formulated as a reasoned response.
