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LEGAL DICTIONARY

Business Strategy

Business strategy comprises the plan of action and the decisions that company owners and managers make to ensure the optimum performance of their organization. It is a key consideration for entrepreneurs and those tasked with responsibility for running businesses effectively.

Defining the main strategies of a business is essential no matter whether it is a new startup or a long-established corporation. Find out now how companies formulate these crucial game plans and the special considerations that go into deciding the direction of these key strategies.

Defining Your Business Strategy

There are many reasons that businesses use decisive strategies to reach important goals. They may be devised as part of a business plan to secure a loan agreement. Alternatively, they may be designed to allow management to explain the direction of the company to employees.

The most important aims that can define your company’s business strategy include:

  • Improving efficiency
  • Making better use of resources
  • Reducing costs
  • Achieving a higher market share
  • Avoiding threats
  • Expansion into new markets

Once these goals are clearly defined, owners and managers then need to consider the ways that their aims can be met. Companies will often formulate their strategies by taking into account a number of the following key factors within a business such as its:

  • Operational effectiveness
  • Strengths and weaknesses
  • Competition and market placement
  • Staff and resources
  • Costs

Levels of Business Strategy

Business strategies at their implementational stage can usually be divided into 3 different levels. Whilst these will always vary in practice depending on the size of the company, the services or products it produces, and its corporate structure, these levels are broadly applicable across almost all kinds of business.

Corporate Level Strategies

Corporate level strategies are the most far-reaching company plans. These will involve most if not all of the business in actualizing the main goals that are to be achieved. It clearly defines the actions of all parts of the company.

Business Unit Level Strategies

At the business unit level of strategies, the precise plans of action are set by key operational segments of the company. These will be individually planned to fit well with the overall company strategy whilst taking into consideration the needs and capacities of each unit.

Functional Level Strategies

Finally, at the functional level of a strategy, individual departments within the key business units will set their plans for achieving the wider company goals. These will affect the day-to-day decisions and functionalities of the company and will inform the progression of the strategy in the upper levels of management.

Making sure the strategy of a business is clearly defined is an essential step to ensuring its success. By being certain of the objectives of the company as a whole, its management can effectively show that the direction of the business is sound.

Read More: How to Write a Business Proposal

Business strategy comprises the plan of action and the decisions that company owners and managers make to ensure the optimum performance of their organization. It is a key consideration for entrepreneurs and those tasked with responsibility for running businesses effectively.

Defining the main strategies of a business is essential no matter whether it is a new startup or a long-established corporation. Find out now how companies formulate these crucial game plans and the special considerations that go into deciding the direction of these key strategies.

Defining Your Business Strategy

There are many reasons that businesses use decisive strategies to reach important goals. They may be devised as part of a business plan to secure a loan agreement. Alternatively, they may be designed to allow management to explain the direction of the company to employees.

The most important aims that can define your company’s business strategy include:

  • Improving efficiency
  • Making better use of resources
  • Reducing costs
  • Achieving a higher market share
  • Avoiding threats
  • Expansion into new markets

Once these goals are clearly defined, owners and managers then need to consider the ways that their aims can be met. Companies will often formulate their strategies by taking into account a number of the following key factors within a business such as its:

  • Operational effectiveness
  • Strengths and weaknesses
  • Competition and market placement
  • Staff and resources
  • Costs

Levels of Business Strategy

Business strategies at their implementational stage can usually be divided into 3 different levels. Whilst these will always vary in practice depending on the size of the company, the services or products it produces, and its corporate structure, these levels are broadly applicable across almost all kinds of business.

Corporate Level Strategies

Corporate level strategies are the most far-reaching company plans. These will involve most if not all of the business in actualizing the main goals that are to be achieved. It clearly defines the actions of all parts of the company.

Business Unit Level Strategies

At the business unit level of strategies, the precise plans of action are set by key operational segments of the company. These will be individually planned to fit well with the overall company strategy whilst taking into consideration the needs and capacities of each unit.

Functional Level Strategies

Finally, at the functional level of a strategy, individual departments within the key business units will set their plans for achieving the wider company goals. These will affect the day-to-day decisions and functionalities of the company and will inform the progression of the strategy in the upper levels of management.

Making sure the strategy of a business is clearly defined is an essential step to ensuring its success. By being certain of the objectives of the company as a whole, its management can effectively show that the direction of the business is sound.

Read More: How to Write a Business Proposal