Specifically, we'll examine the various types of corporate strategy, providing a framework to recognize when a given strategy is most appropriate. Also, we'll provide real-life examples of corporate strategy in action, along with an overview of corporate portfolio tools used in corporate strategy formulation. Strategy is defined as "the art of devising or employing plans or stratagems toward a goal" Merriam-Webster online, Within a broad business context, strategy is an integrated set of plans for achieving long-term organizational goals.
The first step in strategic planning is to develop sound objectives for the organization based on a rigorous analysis of available data about the marketplace, the competition, and the resources of the organization.
These must be specific with measurable outcomes so that success can be objectively determined. Supporting plans and budgets can then be developed to provide a practical guide for carrying out the budget strategy and meeting its objectives.
Although much of corporate strategy revolves around the "bottom line," not all approaches to strategy and policy are about marketing support. Total Quality Management and Six Sigma strategies help better position an organization in the marketplace by emphasizing quality.
Business Strategy Overview A wise person once said that "if you don't know where you're going, you'll never get there. Development of a successful business does not happen as a result of luck, but requires hard work.
As in pathfinding, the roadmap to success in the business world is to determine where one is going and then to specify the best way to get there. In business, determining the target destination for the organization is called goal setting.
Goals define in practical terms what the organization would like to be within a specific period of time. Determining the best way to accomplish these goals is called strategic planning.
A strategy is a plan of action to help the organization reach its goals and objectives. A good business strategy is based on the rigorous analysis of empirical data, including market needs and trends, competitor capabilities and offerings, and the organization's resources and abilities.
Implementation of the plan is done through policies and practices. These are guiding principles or specific procedures or courses of action developed to help the organization meet its goals and objectives. Policies are typically developed to support business strategies or in response to government regulations.
For example, an organization may have a series of customer service policies that deal with how employees are supposed to interact with customers in order to keep them loyal to the organization's brand and it may also have a series of human resource policies for how it deals with its own employees to not only encourage them to maximize their performance, but also so that the organization is in compliance with various laws regarding equal treatment, minimum wage, and so forth.
Organizations may also have policies about social and environmental concerns or other factors that it perceives as important to its reputation and success.
Determining the organization's business goals requires an examination of several areas of the firm's functioning. To avoid falling into the trap of doing activities that appear to reach a goal but that, in fact, are only spinning the corporate wheels without making real progress, the objectives of the organization need to be expressed in concrete terms.
For example, rather than stating that the goal of the company is to "maximize profits and return on investment," "develop new and high quality products," or "meet our corporate social responsibility," objectives need to be specific; stating how success will be determined in measurable terms.
For example, rather than saying that the organization is going to increase profits, a well-stated objective would state how much profit the organization is trying to make and the time frame in which this is to be achieved e. Rather than vaguely stating that new products will be developed, a well-stated objective would specify the types of products to be developed and the quality standard to which they are to be developed e.
Similarly, vague goals about social responsibility would be replaced by specific objectives stating in what kinds of public service activities the organization will be involved and the extent of its involvement.Continued business success is the result of systematic planning, the process of developing strategies to increase the organization's market share and policies to promote this goal and meet other.
A good business strategy is based on the rigorous analysis of empirical data, including market needs and trends, competitor capabilities and offerings, and the organization's resources and abilities.
Strategy → New research on business and management strategy from Harvard Business School faculty on issues including strategy development, execution, and gauging effectiveness.
Browse articles by topic - HBS Working Knowledge: The latest business management research and ideas from HBS faculty. Dealing With A 10 Page Paper Assignment: The Best Business Topics. Small business strategy. Discuss the specific challenges of managing a small enterprise. Identify the features that all successful small companies share and suggest a course of action for a small business founder that can increase the likelihood of success.
and research. paper is to contribute to this literature by presenting an integrative framework to distinguish and relate the concepts of business model, strategy, and tactics.
Put succinctly, business model refers to the logic of the firm, the way it operates and how it creates value for its stakeholders.