Strategy in Business

Business strategy determines the success of an organization. It defines the way an organization intends to tackle competition. A business strategy intends to define the following:

Ø  Scope of business

Ø  Current and future needs of customers

Ø  Capabilities of the organization/key differentiating factor for competitive advantage

Ø  Ways to leverage the key differentiating factor  

A business strategy being of “strategic” importance, it is necessary for a strategy to meet the following quality tests:

§  The scope of the strategy should be correctly defined

§  The strategy should be well documented

§  It should address the real needs of the customers

§  It should be in line with the core competencies of the organization

§  It should define the competitive advantage of the organization

§  It should lay the groundwork for implementation

Thus the intent of business strategy is to leverage the unique capabilities of an organization to gain as well as sustain competitive advantage in catering to the needs of customers in the market. 

Strategy at Different Levels of a Business

There are different strategies at different levels in an organization - ranging from the overall business strategy to strategy at individual level.

Corporate Strategy – It is concerned with the overall purpose of the business and ability of the organization to meet customer demands. It is heavily influenced by investors and acts as a guide for decision-making throughout the business. Corporate strategy is often stated in the vision and mission statements.

Business Unit Strategy – It is concerned more with how an organization would compete successfully in the marketplace. It affects decisions regarding choice of products, meeting needs of customers, competitive advantage, creating new opportunities etc.

Operational Strategy – It is concerned with the execution of corporate and business-unit level strategic directions. It focuses on issues of resources, processes, people etc.