What Is Strategy?
For many years now, strategy has been studied by many business theorists and business leaders. However, the truth of the matter is that there is a defiant answer about what it really is.
The main reason why this is so is that; different people think about strategy in different ways.
For example: some people think and believe that you must first analyse the present carefully, then anticipate market changes in your industry before coming up with a business strategy, in order to succeed. Others think that predicting about the future is very difficult and prefer coming up with a business strategy organically.
According to Kevan Scholes and Gerry Johnson, who are the authors of ‘Exploring Corporate Strategy’; say that strategy determines the scope and direction of an organisation on a long term basis. They continued to say that it should determine the way resources should be configured to meet the needs of the stakeholders and markets.
According To Michael Porter who is a professor at Harvard Business School and a strategy expert; insisted that the need for a strategy is to express and connect an organisation’s unique position. He continued to add that it should determine how an organisation skill, assets and competencies should be combined to come up with a competitive advantage.
There is a big chance that you have heard of the term ‘Business Strategy’ used a lot in workplaces. However, do you really know what exactly Strategy is? Do you also know that you will need different forms of strategies at different levels within an organisation?
Well, this article will help you understand more about strategies by looking at some common definitions of strategy. We will focus on three strategic levels, which are:
• Corporate Strategy
• Business Unit Strategy
• Team Strategy
At the same time, we shall be looking at some of the primary models and tools related to each strategy.
When it comes to business, Corporate Strategy refers to the overall strategy of an organisation, which is made up multiple units, operated in multiple markets. This determines the way an organisation enhances and supports the value of the business units within it. This answers the question “How do we structure the overall business so that all parts creates more value together than they would individually?”
In order to come up with a good corporate strategy, you have to ensure that you have built a solid internal capabilities, through sharing resources and technologies among corporate units, through raising cost effectively. It could be through developing a strong business product and more.
Business Unit Strategy
Business Unit Strategy level is aimed at competing successfully in a particular market. This strategy answers the question ‘How do we win in this market?’. It is very important to note that this strategy requires it to be linked with objectives recognised in the corporate level strategy.
In order for business unit strategies and corporate strategies to be successful, you will need a team to execute them. Each organisational team offers different contribution and hence requiring each team to have its own team level strategy.
The team strategy must be aimed at achieving the business unit strategy, of which it will contribute to corporate strategies. This means that team strategy is very important and acts as the backbone of the entire business strategy.
The strategy is an important part of a business function and it helps them defy a goal to focus on. Within a strategy, there are smaller objectives that can also be labelled as strategy in their own rights. To further complicate the matter, each department will have multiple level of strategy that is focused on different aspects of the core objective. This is why strategy is not a simple term to define, especially when discussing about large corporate operations.