Business strategy

Question 1

What is Business strategy about?

Answer 1

• where the business is trying to get to in the long term
• the markets a business should compete in and the kind of activities that are involved in such markets
• how the business can perform better than the competition in those markets
• the resources (skills, assets, finance, relationships. technical competence)
• the external, environmental factors that affect the businesses’ ability to compete.

Question 2

What is corporate strategy?

Answer 2

• This is concerned with the overall purpose and scope of the business to meet stakeholder expectations. this is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision making throughout the business.

Question 3

What is Business unit strategy?

Answer 3

• this is concerned more with how a business competes successfully in a particular market.
• it concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities.

Question 4

What is Operational Strategy?

Answer 4

This is concerned with how each part of the business is organised to deliver the corporate and business unit level strategic direction.
operational strategy therefore focuses on issues of resources, processes, people etc.

Question 5

What is strategic analysis?

Answer 5

• this is all about analysing the strength of businesses position and understanding the important external factors that may influence that position
• the process of strategic analysis can be assisted by a number of tools, including:
• PEST analysis
• scenario planning
• five forces analysis
• market segmentation
• directional policy matrix
• competitor analysis
• critical success factor analysis
• swot analysis
• strategic analysis
  strategic choice
• strategic implementation