Scribd
Upload
81 views25 pages

To Business Strategy: A Guide by Reda Shuhumi

This document provides an overview of business strategy. It defines strategy as a high-level plan to achieve goals under uncertain conditions. The document outlines the characteristics of strategic decisions and notes that strategy is concerned with the direction and scope of an organization. It also discusses the different levels of strategy, including corporate, business unit, and functional strategies. Additionally, the document introduces key strategic concepts such as mission, vision, goals, and objectives. Finally, it presents an eight-step model for developing a strategic plan that includes clarifying mission and vision, analyzing the environment, agreeing on priorities, developing the plan, assigning tasks, rolling out the plan, and monitoring performance.

Uploaded by

Dalila Kerma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
81 views25 pages

To Business Strategy: A Guide by Reda Shuhumi

This document provides an overview of business strategy. It defines strategy as a high-level plan to achieve goals under uncertain conditions. The document outlines the characteristics of strategic decisions and notes that strategy is concerned with the direction and scope of an organization. It also discusses the different levels of strategy, including corporate, business unit, and functional strategies. Additionally, the document introduces key strategic concepts such as mission, vision, goals, and objectives. Finally, it presents an eight-step model for developing a strategic plan that includes clarifying mission and vision, analyzing the environment, agreeing on priorities, developing the plan, assigning tasks, rolling out the plan, and monitoring performance.

Uploaded by

Dalila Kerma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 25

Introduction

to Business
Strategy

A guide by REDA SHUHUMI


What is strategy?
● Strategy is a high level plan to
achieve one or more goals under
conditions of uncertainty.
● Uncertainty is the state of being
uncertain of future consequences.
Characteristics of Strategic Decisions

Strategy is It is concerned It is to achieve


concerned with with the Scope of Advantage for the
the Direction of an organization's organisation over
an organization. activities. competition.
It is a search for Strategic
Fit with the business
environment.

It creates opportunities by
building on an
organization's resources
and competences.
"Strategy is the direction and
scope of an organisation over
the long-term: which
achieves advantage for the
organisation through its
configuration of resources
within a challenging
environment, to meet the
needs of markets and to fulfil
stakeholder expectations".
Consequences of strategic
decisions are:
➔ Complex Strategic decisions can be complex in nature
(geographic scope).
➔ Uncertainty about the future.
➔ Operational decisions (finding new suppliers,building
strong brand).
➔ Integration (outside and inside the organization).
➔ Relationships & Network outside the organisation.
Levels of Strategy
Corporate Level Business Level Functional Level
Strategy Strategy Strategy
Defines the Involves defining Formulated by the
business areas in the competitive operations team.
which your firm will position of a By setting up
operate. strategic business short-term
unit. objectives.
Levels of Strategy
● Corporate Level Strategy, It is concerned with the
overall purpose and scope of an organization and how
values will be added to the different parts (business units)
of the organization.

ie. Geographical coverage, diversity of products/ services or


business units and how resources flow.
Levels of Strategy
● Business Level Strategy SBU

It is about how to successfully compete in a particular


market to increase the long term profitability and market
share growth. It concerns strategic decisions about
choice of products, meeting needs of customers, gaining
advantage over competitors, exploiting or creating new
opportunities etc.
“Corporate-level
strategy involves
decisions about the
organisation as a whole,
strategic decisions are
related to strategic
business units SBU”.
Levels of Strategy
● Functional or Operational Strategy

Is concerned with how each part of the business is


organized to deliver the corporate and business-unit
level strategic direction. Operational strategy therefore
focuses on issues of resources, processes, people etc.
Vocabulary of Strategy
Mission Vision Goals Objectives
Overriding Desired future What a Are measurable
purpose in line state: the company steps an
with values/ aspiration of expects to organisation
expectations of the accomplish takes to achieve
stakeholder. organization. over a specific its goals with a
period of time. timeframe.
Vocabulary of Strategy
● Mission - Overriding purpose in line with values/
expectations of stakeholder e.g. Be healthy and fit.
● Vision or strategic intent - Desired future state: the
aspiration of the organization e.g. To run the London
Marathon.
● Goal - General statement of aim or purpose e.g. Lose
weight and strengthen muscles.
Vocabulary of Strategy
● Objective - Quantification or more precise statement of
goal.
● Strategic capability - Resources, activities and
processes: some will be unique and provide competitive
advantage e.g. Proximity to a fitness centre; a successful
diet (unique resources and core competence).
Vocabulary of Strategy
● Strategies - Long term direction e.g. Exercise regularly,
compete in marathons locally, stick to appropriate diet.
● Business model - How product, service and information
flow between participating parties e.g. Associate with a
collaborative network (join a running club).
● Strategic Control - Monitoring of action steps to (A)
Assess effectiveness (B) Modify actions. e.g. Monitor
weight.
Strategic Process in 8 steps
Step One: Getting prepared.

Decide on the team who will be


involved in the planning process ,
gather all needed information
ensuring all information is up to
date and as accurate as possible,
and Identify any specific issues that
needs to be addressed.
Step two: Clarify the mission
and vision statements.

Identify, clarify and reach


consensus on the company's
mission and vision statements ,
corporate values and culture, the
main goal of why the company
exists and create an image of what
success looks like for your company.
Step three: Environmental
analysis. (Perform a SWOT
analysis)

Gather up-to-date information on


internal strengths and weaknesses
and external opportunities and
threats so you can develop an
understanding of all critical issues.
Step four: Agree on priorities.

As in any planning process, all


priorities need to be set and agreed
as well as broad strategies for
handling critical issues and what
outcomes are to be sought. It is
important that you and your
planning team agree on all major
and key priorities.
Step five: Put the plan
together.

In this step you should start


putting all the bits and pieces
of your plan together (in one
document ) to facilitate
implementation and constant
review.
Step six: Distribute tasks
and assign actions

Now that your plan has been


placed together in one
document, it's time we will
start assigning specific tasks to
each specific team,
department or individual.
Step seven: Roll-out the plan.

Now your plan needs to be


communicated and circulated
to everyone in your
organization to ensure
alignment, also to ensure that
energy & efforts of the team are
aligned towards the same
direction.
Step eight: Monitoring &
evaluation.

The plan needs to be constantly


monitored and performance
needs to be measured through
either monthly or quarterly
strategy staff meetings. to hold
people accountable and making
sure that the plan activities are
actually happening.
THANK
YOU
[email protected]

You might also like