A business strategy provides the guiding principles for many organizational decisions, such as hiring new employees, or developing new products. And helps you to define the methods and tactics you need to take within your company.
Creating a business strategy that’s in line with the vision you have for your organization is a time consuming exercise. In this article, we’ll discuss what a business strategy is and why it’s important, the different components of a business strategy and explore some examples of business strategies to help you generate ideas for your own company.
Whilst a business strategy is simple to understand in theory, developing a good business strategy, and then actually implementing it, is no easy task.
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.
This long-term sketch will contain an outline of the strategic, as well as tactical decisions a company must take to reach its overall objectives. This business strategy will then act as a central framework for management.
Once this framework is defined, management must live and breathe it. It helps the different departments within a business work together, ensuring that all departmental decisions support the overall direction of the organization. This helps to avoid working in silos, or different teams pulling in opposite directions.
At this point it is important to highlight the difference between a business strategy, and a mission statement. One example is Amazon’s “to be Earth’s most customer-centric company” this is not a strategy, more the vision that the strategy will deliver, and creates the framework within which the strategy will be developed.