What are the Types of Business Strategy?

-

  • Organizational (Corporate) Strategy.
  • Functional Strategy.
  • Business (Competitive) Strategy.
  • Operating Strategy.

1. Organizational (Corporate) Strategy:



Corporate strategy is a unique plan or framework that is long-term in nature, designed with an objective to gain a competitive advantage over other market participants while delivering both on customer/client and stakeholder promises (i.e. shareholder value).

A corporate strategy refers to a companywide strategy aligned with the company’s vision and objectives, aiming to create value and increase profit. It considers an organ

2. Functional Strategy:



A functional strategy is the approach a business functional takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. It deals with a relatively restricted plan that provides the objectives for a specific business function.

A functional strategy, also known as a “departmental strategy”, concerns each organizational function, and how that organizational unit or division assigned that function will achieve its strategic objectives (a part of the business/competitive strategy). It generally does this by improving or maximizing efficiency and productivity within the functional unit.

Examples of types of functional strategies include:

 •   production strategy,

 •    marketing strategy,

 •    advertisement strategy,

 •    sales strategy,

 •    human resources strategy,

 •    inventory strategy,

 •    financial strategy,

 •    training strategy, etc.

3. Business (competitive) strategy:



In essence, a business strategy is an organizational master plan. This plan is what the management of a company develops and implements to achieve their strategic goals. Essentially, a business plan is a long-term sketch of the desired strategic destination for a company.

4.Operating strategy:



 Operational strategy involves refining and specifying a company's business strategy and developing strategic initiatives and operational plans, aimed at enabling departments and business units to successfully implement the overall business strategy.

Comments

Post a Comment

Popular posts from this blog

Strategic Management Model

-
         Strategic management is a process of strategy formulation, implementation and control. Its main aims is to achieve the organization objectives and goal. It has a certain model comprising a process from developement of vision and mission statement to strategy evaluation and control.   1. Development of Vision and Mission Statements 2. External Environment Analysis 3. Internal Environment Analysis 4. Establish Long-term Objectives 5. Generate, Evaluate and Select Strategies 6. Implement Strategies  7. Strategy Evaluation and control     EXPLANATION 1. Development of Vision and Mission Statements:                     In the first step of strategic management model, organization mission and vision are developed. Vision is the picture of desired future state of an organization. It is nicely worded one sentences statement. It specifies the direction that a company intends to follow in ...
Read more

Concept of Human Resource management (HRM)

-
    People are the focus of human resource management. Organization need people and people need organizations. Human resource management is concerned with managing people in organizations. It is essential function of management. It is every manager's job.              Human resource are vital for achieving organizational objectives. Better people achieve better results. Organization effectiveness depends on the performance of people working in organizations. All people posses energy and physical strength. People become human resource when they combine energy and physical strength with competencies. Competencies consists of knowledge, skills, attitudes and potential for growth.    Human resources are people who are ready, willing and able to contribute to organizational objectives. Human resources of an organization include all employees engaged in various jobs at different levels. It is about managing people. It is concerned with t...
Read more