Definition: Business strategy can be understood as the course of action or set of decisions which assist the entrepreneurs in achieving specific business objectives.
It is nothing but a master plan that the management of a company implements to secure a competitive position in the market, carry on its operations, please customers and achieve the desired ends of the business.
In business, it is the long-range sketch of the desired image, direction and destination of the organisation. It is a scheme of corporate intent and action, which is carefully planned and flexibly designed with the purpose of:
- Achieving effectiveness,
- Perceiving and utilising opportunities,
- Mobilising resources,
- Securing an advantageous position,
- Meeting challenges and threats,
- Directing efforts and behaviour and
- Gaining command over the situation.
A business strategy is a set of competitive moves and actions that a business uses to attract customers, compete successfully, strengthening performance, and achieve organisational goals. It outlines how business should be carried out to reach the desired ends.
Business strategy equips the top management with an integrated framework, to discover, analyse and exploit beneficial opportunities, to sense and meet potential threats, to make optimum use of resources and strengths, to counterbalance weakness.
Levels of Business Strategy
- Corporate level strategy: Corporate level strategy is a long-range, action-oriented, integrated and comprehensive plan formulated by the top management. It is used to ascertain business lines, expansion and growth, takeovers and mergers, diversification, integration, new areas for investment and divestment and so forth.
- Business level strategy: The strategies that relate to a particular business are known as business-level strategies. It is developed by the general managers, who convert mission and vision into concrete strategies. It is like a blueprint of the entire business.
- Functional level strategy: Developed by the first-line managers or supervisors, functional level strategy involves decision making at the operational level concerning particular functional areas like marketing, production, human resource, research and development, finance and so on.
In business, there is always a need for multiple strategies at various levels as a single strategy is not only inadequate but improper too. Therefore, a typical business structure always possesses three levels.
Nature of Business Strategy
A business strategy is a combination of proactive actions on the part of management, for the purpose of enhancing the company’s market position and overall performance and reactions to unexpected developments and new market conditions.
The maximum part of the company’s present strategy is a result of formerly initiated actions and business approaches, but when market conditions take an unanticipated turn, the company requires a strategic reaction to cope with contingencies. Hence, for unforeseen development, a part of the business strategy is formulated as a reasoned response.
Tridindia says
This is an amazing post. I also liked your writing style in paragraphs.
Gennaro says
Great post! Very helpful.
T.Afrikaner says
well explaned
M. Suman says
It is very useful
vishal says
best information thankyou
DHARAM BIR says
This is a great help for management, commerce and economics students.
komal says
nice
Godwin says
Wooww…just what I needed. Great piece
Md.Saiful islam says
It is easy to understand.
chamana prasad says
Thanku you so much
Ravinka says
Nicely explained thanx from Australia
Surbhi S says
Many thanks to all the readers for your kind words, your appreciation encourages us to do even better in future, keep reading. 🙂
Maxonium says
An excellent article, I often read your material and am very pleased. Thank you for the information and successful work.
Unique says
This is super
Martin Mundondo says
Excellent and very helpful
Manish Dangi says
informational article..keep wiritng
Sourav Ash says
Great Article
realesson says
Dear Sir! This is a great help for management, commerce and economics students.
makondo says
The clip was very very resourceful for entrepreneurs
chandradatt singh says
This is the best site i can find my answers for my questions for my business studies. The answers are straight to the point and is not in big fancy language.
Pavithra says
It is very helpful for students
SHANKAR KUMAR says
THANK YOU FOR THIS ARTICLE AND VALUABLE INFORMATION
Admin says
wonderful review article. very informative helpful article. I found a lot of information from this share. I just wanna give a big thumb for this article.
Thank you, Author, for share such an informative article.
Hopefully, waiting for your more article in the future.
Aditya says
Very well explained. All the concepts are very clearly explained
Jerry Ugbosu says
fantastic write up! your work is Amazing and very easy to comprehend.
F backer says
Well explained
Gautam Biswas says
I am going to sell my services. I am a graphic designer. I have designed my personal website and i want t o start my business.
Your post is a master-piece to me. Thank you for your business insight. I have created a pdf of the web page.
Thank you again.
Fida Muhammad Khan says
Defined business Strategy in a suitable way
MD. ANWAR HOSSAIN says
It is helpful to banking sactor for implementation of business development.
Marti says
Useful information. Fortunate me I discovered your web
site accidentally, and I am shocked why this twist of fate did
not happened earlier! I bookmarked it.
Nandy says
well explained
John David says
Hi,
The article is well written and worth reading. Thank you for sharing the valuable information.
Lungire A* says
Nice I guess it is helpful
Steven Alberto Mwasaka says
awesome content!
Keke Leroma says
Your information is well-expressed and it is detailed. I learnt a lot from this article and Thank you.
Qonitah Azzahra says
May I know, Who is the authors?
Surbhi S says
It is written by Surbhi S.
khani.biz says
hi
Well-written article and worth reading. Thank you for your good article