Business Strategy: Understanding Business Stergies And Corporate Strategies

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Understanding Business Strategies and Corporate Strategies. In every business, whether it is big or small, there will be two strategies that must be implemented at one stage of its existence in the business world. These strategies are known as Business and Corporate Strategies. The Business Strategy is made up of completely different things compared to the Corporate Strategy. A small business working or producing in a single industry must develop a competitive advantage if it is to be profitable you can gain competitive advantage by outperforming your competition in some aspect of business to produce your goods or services at a lower cost. Owners also can show you the advantage of their products to sell them to you at a premium. I will show…show more content…
A really good business strategy usually covers 3-5 years, maybe even longer depending on the organisation. This is known as a long-term plan or what you would like to achieve in the firm in the future and how you are going to reach this goal. A business strategy exists for major resource issues within the organisation, an example of this would be finance issues, say the business wanted to expand and build a new factory you must consider the state of the finance in the business. The decisions a company makes on its way to creating, maintaining and using its competitive advantages are business-level strategies. After evaluating the company's product line, target market and competition, a small business owner can better identify where her/his competitive advantage lies. For example, let’s say a gourmet candy company, might find that it cannot compete on price; Larger corporations often enjoy economies of scale that keep costs low. Instead, the small business would choose a different strategy that would focus on emphasising freshness, quality ingredients or some other attribute consumers will value highly enough to pay extra money for it. Business strategy will affect the small company's functional decisions such as the selection of its promotions and distribution…show more content…
The Corporate Strategy is all about knowing where your business is today, where you actually want it to be in the future and how you plan on getting it there. There is a huge risk if you do not change and improve your business, it'll just be left behind in terms of your financial state and reputation, if you do not strive to develop a better business. When a business notices opportunities outside its industry, it might have a long and hard think about diversification. When more businesses add on and become part of the company, the small business owner must consider corporate-level strategy. To be effective, the umbrella company must contribute to the efficiency, profitability and competitive advantage to each business unit. The gourmet candy maker that I used as an example in the Business strategy may decide to enter the dried-fruit business, for example. The corporate decision is heard only if the bigger company can grow and develop a competitive advantage-say over both businesses. For example, the owner may determine that her mail-order candy distribution system is perfectly suited for dried-fruit business and that customer research indicates existing customers. Or she may be able to negotiate volume discounts for raisins, dried cranberries, and dried cherries she will use in both of her

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