Contents

• Introduction to Business Strategy.

 Business?
 Strategy?
• Meaning and Definition of strategy.
• What is Business Strategy?
• Nature & Characteristics of Business Strategy
 Intro. about “Business” & “Strategy”

Introduction:
Globalization of economy has brought about revolutionary changes in the
policy framework of both developed and underdeveloped countries.
The liberalization has removed artificial trade barriers and businesses have,
now truly become international and the competition has become very
severe.
These developments gave rise to new paradigms in business policies and
strategic thinking. Due to this, there are drastic changes in conventional
concept of business.
• The survival and success of the firm, is influenced significantly by
superior strategies like business have started focusing on customers and
their satisfactions rather than focusing on products and sales.
• Early 1960’s corporate planning was popular but after 1980’s its place has
taken by strategic management to face stiff competition arisen by
globalization.
 
The success and failure of a business depends upon type of policy that the
firm pursues. This is known as business policy.
• Business policy refers to “decisions” about the future taken by top
management.

Normally the business policy consists of :

• Study of the functions and responsibilities of senior management

• Study the organizational problems affecting the success of total enterprise.
• It determines the future course of action that organizations have to adopt.
• Know the purpose (vision, Mission, Goals)
 Vision: The ability to plan the future with Imagination.
 Mission: The Purpose for which the organization exists.
• Lastly, it is concerned with the proper mobilization of resources so that
Organization can attain its goal easily.
 
 MEANING AND DEFINITION OF STRATEGY

Unlike the pure science which have their foundation in

experimental research, management studies draw upon the
practical experiences of managers.
• Business policy is rooted in the practice of management and
has passes through certain phases before taking its shape of
strategic management.
• The concept of “strategy” is undoubtedly the most significant
concept in business policy and strategic management.
• The concept of strategy is derived from military principles.
• In military context, the strategy is a plan of action to win a
war. Here military identify the quality and quantity of
resources to be mobilized and used at the most appropriate
time in suitable and convenient manner to win a war.
• But, In business parlance, there is no definite meaning of strategy and
used for number of things like……..
 Mobilizing the resources,
 Deploying the resources effectively,
 Close monitoring of organization’s activities,
 Problem Solving, etc.,
• It is related to pursuing those activities which move an organization
from its current position to desired future state.
It also relates to resources necessary for implementing a plan or
following a course of action.
• Strategy literal meaning is “In anticipation of opponents move,
designing one’s own way of action”. As it has different interpretations
and really difficult to fathom what strategy means.
• So we can conclude that, it is the means to achieve organizational
goal.
 
What is Business Strategy?
A business strategy is a set of guiding principles that, when
communicated and adopted in the organization, generates a desired
pattern of decision making.
Business Strategy is a choice.
There are two building blocks to be focused on while making a choice.
 The first one is to know the client and their expectations. It is a type of
segmentation thinking.
 The second building block is the value chain, where your job is to figure
out how you are going to make your client happy in a unique way.
• One of the keywords to remember in this definition is the word unique. 
• If we look at the world of business, it’s not about being the best, but it’s
about being unique, that can have a long-term healthy return. It’s your job
to pick and choose where you are going to compete to take that unique spot.
So, aim to be unique and don’t compete to be the best. 
 NATURE AND CHARACTERISTICS OF
BUSINESS STRATEGY
•  

 Business strategies are Objective Oriented.

 Future oriented to attain Future position of the org.
 Availability and allocation of resources.
1. Physical Resources
2. Financial resources
3. Human Resources
 Influences of Environment.
 Universal applicability.
 Levels of strategy.
1. Corporate level
2. Business level
3. Functional/operational level
 Review.
Strategies are to be reviewed periodically as in the process of its implementation certain
changes are going to take place.