Business Strategy: The Concept Of Corporate Strategy
Introduction:
Roman philosopher Seneca quoted that, “If a man doesn’t know what port he is steering for, no wind is favourable”. Same goes for organizations and business enterprises. Without strategy, the best managerial team, product, services and goals are of little use. To transform and revitalize corporations, government agencies and non-profit organizations- strategic planning has been a tool long used for.
Strategy is a bridge between policy and actions, means and ends. It belongs to those who govern and those who manage. However, tactics belong to those who manage. Deployment of resources is the responsibility of those who govern and manage but employment of resources is the responsibility of those who manage. It includes ideas,
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An organization chooses different set of activities to produce a product that is unique in all or at least in some specifications. Differentiating yourself from the competitors in the eyes of customers is all about being competitive.
Another important aspect is that leadership must think strategically before defining strategies for the organization. They must have a clear idea of objectives, mission, tactics and perspective of the outcome achieved by the organization. Without being sure about what to achieve, all the planning can go in
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Strategic thinking is a key requirement for the success of any entity. An organization could be strategically competitive only by evolving good corporate strategies. When a company creates corporate strategy which others are unable to make replica of or it’s too costly for them to implement, only then that company could be able to sustain the competitive edge against others. Defining a corporate strategy is not only difficult for large firms such as IBM and Microsoft but it is also challenging for smaller firms and outlets.
As Porter (1996) defines, “Strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value.” The pressure of uncertainties, threats and constraints are making organizations to find ways for a healthy survival. Strategic management is the best route to explore the opportunities and minimize the threats. Strategy is the reason any business firm is established for and it gives sense of loyalty and motivation to employees as they are clear about what to do, when, how and by whom?
Types of Strategy:
It is imperative to outline the levels of strategies as they explain the time-frame. There are three widely accepted levels:
Enterprise level
Business unit
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