Business strategy is the procedure of the formulation, implementation, and evaluation of the multifunctional decisions, which help a business enterprise to accomplish its goals. It is a manoeuver of particularizing the objectives of the organization, development of plans and policies for achieving these goals, as well as allocation of resources for the implementation of the plans and policies to accomplish the goals of the business enterprise.
Hence, business strategy is a multifunctional domain of a business enterprise, which is utilized to attain its goals. It is basically a combination of the operations of the different functional domains of a business enterprise. Business strategy is also termed as strategic management and it is regarded as the top level of managerial function.
The formulation of business strategy is usually done by the Board of Directors of a company and it is carried out by the executive team and Chief Executive Officer (CEO) of the organization. Business strategy offers overall guidance to the organization and has a close link with the area of organizational studies.
The principal processes involved in business strategy can be categorized into the following types:
Formulation of Strategy (With the help of SWOT analysis or Strength, Weaknesses, Opportunities, and Threats Analysis)
Implementation of Strategy
Evaluation of Strategy
Generally, the major approaches taken towards strategic management are the following:
The Sociological Approach (Done on the basis of economic theories and the issues dealt include economies of scale and resource allocation) The Industrial Organization Approach (Done on the basis of human interactions)
Business strategy or strategic management is usually a broad based concept. Under this strategy, there are other business unit strategies and functional strategies and they are as follows:
New product development strategies
Human Resource Strategies
Information Technology Management Strategies
Strategic Business Unit (SBU)
Strategic management functions as an important device, which helps the business entities gain competitive advantage.
Last Updated on : 29th July 2013