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Business Strategy Templates
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What is Strategy?
Strategy is a plan of actions taken by managers to achieve a company’s overall goals. It’s essentially about deciding where the company wants to play in the market and how it is going to win customers. Strategy is a critical part of a business plan because it is closely tied to financial analysis and other aspects of a business. When a company develops its strategy, it has to consider different factors including the internal and external environment, opportunities and risks, as well as the company’s current and future performance.
Levels of Strategy
There are three different levels of strategy:
1. Corporate-level (Portfolio): Decisions about managing multiple businesses in the form of horizontal integration, vertical integration, diversification, acquisitions, etc.
2. Business-level: Market positioning strategies to help the company gain competitive advantage in one or multiple industry.
3. Functional-level: Activities within and between various functions of a company with the aim of improving efficiency of the overall business.
Strategic Analysis Process
Strategic analysis is an ongoing process. The essential steps are:
- Assess the external environment which the business operates in and the internal environment of the company, which directly influences the current strategy the business is using.
- Evaluate and assess current strategy relative to the market, goals, and expected future performance.
- Generate strategic alternatives which will create value for the company and evaluate them based on certain key criteria.
- Recommend and implement the optimal strategic alternative, which will be constantly monitored and reassessed.