Frequently Asked Questions

What Is a Business Strategy?

A business strategy is a plan, or course of action, that sets out which business objectives must be achieved and when. The business strategy is a set of decisions that the company has made that will decide its fate for the near and distant future.

A business strategy is the master plan, which is followed and implemented by the company’s management so the business can continue to operate, please its customers and achieve its long-term goals.

What Is Included in a Business Strategy?

Setting out the long-term goals for a business, the business strategy should flesh out its desired direction and destination. The strategy should define the corporate intent and action of the business, and should consider the following:

• How to achieve effectiveness
• How to find and initiate business opportunities
• How to mobilise and optimise resources
• How to secure an advantageous position amongst the competition
• How the business will sense challenges and defend against potential threats
• How to direct the company’s efforts

What Are the Different Types of Business Strategy?

There are three types or ‘levels’ of business strategy: corporate, business and functional. The different levels of strategy are essential in a thriving business, as multiple strategies at various levels cover the needs and desires of everyone in the company.

Corporate level strategy is action-oriented, long-range and comprehensive; designed by the those in top management, this type of strategy focuses on expansion, growth, takeovers, mergers, integration, diversification and new areas for investment and divestment.

Business level strategies are developed by the general managers of the business, who are tasked with turning the company’s vision or mission into a set of concrete actions and strategies, whilst functional level strategies are created by first line managers and/or supervisors, focusing on issues at the operational level. Functional level strategy includes marketing, human resources, research and development, production and finance.

What Are the Consequences of Running a Company Without a Business Strategy?

Without a clearly defined business strategy it is very difficult to grow and develop as a company. It is more likely that the business will fail to meet targets and goals, as they will not have been formally set-out. A well-made business strategy will focus everyone in the company towards the same goal – highlighting the business’s strengths, identifying areas of weakness, and finding ways to beat the competition.