Definition
Business Strategy is the craft, art, and science of evaluating, formulating, and implementing decisions related to cross-functions to help an organization in the achievement of its long-term objectives. It is the process of defining an organization’s vision, mission, and objectives, and developing plans and policies to achieve them. Resources are then allocated to implement the plans and policies, programs, and projects. Business strategy pursues to integrate and coordinate the activities of numerous functional areas of business for the achievement of the organization’s long-term objectives. Using a balanced scorecard, businesses can evaluate their overall performance and progress towards achieving their objectives.
Brief Explanation
Often, it involves major resource-related issues, such as arranging to finance for a new plant or factory. The strategy includes decisions regarding what type of products to allocate resources to, for example when Coca-Cola launched Pooh Roo juice. The strategy covers the scope of business activities, i.e. where and what they produce. For example, BIC primarily makes razors, lighters, and pens in key regional factories.
Strategies contain two main categories.
- Competitive Strategies
- Generic Strategies
