What is Business strategy?
The
term business strategy means the managerial game plan for a single business. It
is prepared on the basis of corporate strategy.
It
is reflected in the pattern of approaches and moves crafted by management to
produce successful performance in one specific line of business.
In
other words, a business strategy is the means by which it sets out to achieve
its desired ends (objectives). It can simply be described as a long-term
business planning. Typically a business strategy will cover a period of about
3-5 years (sometimes even longer).
A
business strategy is necessary to maintain a business' performance. Business
strategies are motivating, informational and change-stimulating. If you aren't
motivated to form or complete the business strategy to see an end result, your
business will most likely fail. A business strategy is also a wonderful tool to
use when monitoring how well your business is doing over time and deciding the
next step to take in your business in order to be successful.
Features of Business Strategy
- Responses to change in industry
- Responses to change in the economy
- Crafting competitive moves and approaches
- Building valuable competencies and capabilities
- Uniting strategic initiatives
- Addressing specific strategic issues
So,
we can write a business strategy is used to increase the earning potential and
success of a particular business. Business strategies often have profitable
results for business owners just starting out. Business strategies can range
from choosing the most profitable niche for a market to successful ways business
owners can promote a business. Many times, business strategies are used to
improve a business or make a business better than its competitors by making use
of one or more techniques.
