Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    Business Strategy

    Uploaded by

    aishwarya19223

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Business Strategy

    Uploaded by

    aishwarya19223
    4 views12 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    4 views12 pages

    Business Strategy

    Uploaded by

    aishwarya19223

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 12

    Chapter 8

    Business strategy: meaning


    and purpose
    • In simple terms a strategy is ‘how we get from
    where we are now to where we want to be in the
    future’. A successful business will have SMART
    objectives. Its business strategy will be a clear plan
    and set of policies that should help it focus on
    achieving these aims. Business strategy asks the big
    questions, such as, ‘Which markets and products do
    we want to be in?’ It also makes the big decisions,
    such as, ‘Can we expand from manufacturing
    operations into retailing?’ All businesses need
    strategies to provide integration, direction and focus.
    Establishing business strategy
    Strategic management:
    meaning and purpose
    The need for strategic
    management
    If a business did not undertake strategic management, it would fail to: • plan for the
    future

    • respond logically to the changing business environment

    • make effective long-term decisions based on clear objectives.


    Strategy and tactics
    • Strategic management is the highest level of managerial activity. It is undertaken
    by, or at least closely supervised by, the chief executive officer and approved by the
    board of directors.
    • Tactics, on the other hand, are concerned with making smaller-scale decisions aimed
    at reaching more limited and measurable goals, which themselves are part of the
    longer-term strategic aim.
    Approaches to developing
    business strategy
    • Blue ocean strategy- One that exploits uncontested market space
    through product differentiation and low cost.
    • Red ocean strategy- one that competes with rivals in existing
    markets.
    • Scenario planning- Identifying possible future situations and how
    the business might respond to them.
    • SWOT analysis- A form of strategic analysis that identifies and
    analyses the main internal strengths and weaknesses, and external
    opportunities and threats, that will influence the future direction and
    success of a business.
    • PEST analysis- the strategic analysis of a firm’s macro
    environment,including political , economic, social and technological
    factors.
    • Porter’s five forces analysis- A technique for analysing competitive
    forces within an industry. (Barriers to entry, The power of buyers,
    The power of suppliers, The threat of substitutes and
    Competitive rivalry)
    • Core competencies- An important business capability that gives a
    firm competitive advantage.
    • The Ansoff matrix- A model used to show the degree of risk
    associated with the four growth strategies of market penetration,
    market development, product development and diversification.
    • Force-field analysis- a technique for identifying and analysing the
    positive factors that support a decision (driving forces) and negative
    factors that constrain it (restraining forces).
    • Decision trees- a diagram that sets out the options connected with a
    decision and the outcomes and economic returns that may result.
    Porter’s five forces analysis
    Core competencies- An important business
    capability that gives a firm competitive
    advantage.
    The Ansoff matrix
    Force-field analysis

    You might also like