MBA in a Box

Section 2: Strategy in Business

4 Elements of successful strategies:

1. Simple, consistent, and long-term goals

2. Formulated after deep analysis of the competitive environment
3. Objectively consider company’s resources and exploit them in effective manner
4. People who are responsible of achieving these goals are strong-willed leaders and have solid
decision-making capabilities

“Strategy is about making choices, It’s about choosing to be different”

Corporate Strategy Business Strategy

Related to market and industries in which the Related to how a company competes within the
company compete chosen industries
“Where do we want to compete?” “How do we want to compete?”
Issues: Issues:
- Vertical Integration - How to gain competitive advantage
- Diversification (Competitive strategies)
- Mergers and Acquisitions - Manage different business to achieve
- Capital Intensive Investment strategic synergies
- Allocation of Resources - How to monitor the industry
Offers new product, shape the future of the comp environment to make the strat comform
(examp. Kodak) market needs
The strat will be implemented by business
unit managers or division heads
Importance of Mission, Vision, Goals, Values

To state vision statement, we must include specific goals (what we want to achieve) and objective (what
to do to achieve the goals).

Goals can target different area (Growth, profitability, retention, efficiency, customer services), usually
expressed as a percentage

Example!

Goals: inc. revenue by 10% and dec. overheads by 5% in 2017

Objective:

- Gain 5 new customers every month

- Find cheaper office premises
- Implement new machine that reduce production cost
- Outsource activities