Business Strategy

This assignment discusses regarding the business strategy in details, types of business strategies. it further discusses regarding the reason for which business strategies are utilized and a brief description of porters business strategies.

Running head: BUSINESS STRATEGY
BUSINESS STRATEGY
Name of Student
Name of University
Author’s Note

1BUSINESS STRATEGY
Introduction
Business strategies are considered as a high-level plan of a firm in order to reach some
business objectives. The strategies succeed when they help in the growth of business. This
assignment discusses regarding the business strategy in details, types of business strategies. it
further discusses regarding the reason for which business strategies are utilized and a brief
description of porters business strategies.
Business strategy
Business strategy can be defined as an activity used by a specific organizational
department in order to ensure that all the employees and various stakeholders are aiming in
fulfilling the organizational goal, set priorities, strengthen operations going on in their
organization and many more (Services et al., 2019). Strategic planning is a process that is very
systematic and is helpful in setting ambition for a business’ future along with determining the
ways to achieve it. The basic purpose of business strategy includes connection among three areas
such as the mission, vision and plan of the business.
Reasons why organizations use business strategies
Organizations use business strategies for various purposes which help them in increasing
their productivity as well as efficiency. Utilization of business strategies is very important for
determining a specific direction for the organization (Wheelen, Hunger and Hoffman 2017). The
strategies focus on the efforts made by the organization and it also makes sure that every
employee in the organization is contributing in attaining the goal of the organization, the
strategies also help organizations to prioritize its financial needs, building competitive
advantage, aligning of various resources for optimal results, agree on actions which would

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contribute in the growth of business and engaging with staffs as well as communicate regarding
what is to be done next. Along with this significance, one more importance of implementation of
business strategies is that it helps the business to manage as well as reduce their business risks
(Sull, Homkes and Sull 2015). Growing a particular business is usually inherently risky, detailed
business strategies would help the business to remove the uncertainty, analyze various potential
risks, implement various measures to control the risks and consider the ways by which the
organization can reduce the affect of risks.
Types of business strategies
 Business level strategy: business strategy depicts the way by which every
business would try to attempt to achieve the mission for its strategic planning unit
or business unit at this level of strategy. The critical issues that are identified
include boundaries or scope of every business and various operational links with
various corporate strategies as well as the basis where the unit of business would
achieve along with maintaining a specific competitive advantage in the business
(An introduction to Porter's Generic Strategies 2019). The strategies that are
defined in this level by the organization must specify their objectives which
would support the company as a whole along with the business unit. Suppose an
organization can create a strategy for the growth of business which would allow it
to open several different branches of the same organization, in this case it must be
noted that the newly opened business unit must be compatible with the actual
service provided by organization. This would help it to minimize the costs as well
as ensuring that the actual business units keep performing well.

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 Functional level strategy: while crafting functional level strategies, the
organization is connected with smooth internal operations. This consists of factors
of how various departments interact and operate and ways used by them to
support their strategies belonging to corporate level. Usually department heads
craft as well as carry out their strategies of functional level. Strategies of
functional level must be able to provide various ways by which progress is
measured. At the functional level, various teams must create plans for achieving
organizational goals (Serra and Kunc 2015). Functional strategies are usually
concerned with various activities of the functional areas in the business.
 Corporate level strategy: corporate level usually belongs to the highest level
among the business strategies. In this level, long term goals are set, the goals set
in this level affects the rest of the levels. At this level, organization crafts their
vision and mission statements, mission must be clear in order to set the best
corporate strategies (3 Most Important Types of Business Strategies Business
Need To Focus 2019). Corporate objectives are also set at this level. Few goals
like financial, customer, internal and growth goals.
 Market level strategy: this is the last level of strategy; it focuses on the ways by
which an organization plans to grow, if it would be with the help of market
presentation, development in market, development of service or product and
diversification. This level of strategy is a framework which helps in evaluating as
well as optimizing performance of a specific unit.
Business strategy in depth
Porters business strategies

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Business strategies under porters include three parts, these parts are as follows
 Cost leadership: cost leadership strategy of cost leadership helps an organization in
gaining a specific competitive advantage, they help in developing an edge which boosts
up the sale and reduces the same of various competitors (Porter's Generic Competitive
Strategies 2019). This strategy helps in increasing profits along with reducing the costs. It
also helps in increasing the market share of the company by charging very low prices
besides making reasonable profit on sale (Porter's Model of Generic Strategies for
Competitive Advantage 2019). The strategy involves in being a leader in the terms of
cost in that specific market.
 Differentiation: this strategy involves in making the products and services more
attractive and different compared to other competitive organizations (Michael Porter's
Three Types Of Business Strategies 2019). How this strategy is used depends on the
nature of the industry along with the products and services developed by them.
 Focus: this strategy concentrates on specific niche markets along with understanding
dynamics of market and various unique necessities of customers. They help in developing
well-specified and low-cost products (Porter's Generic Strategies 2019). They help in
building loyalty of brand among the customers.
Conclusion
From the above assignment it can be concluded that business strategies are important for
every organization irrespective of their size and the field that they work on. Business strategies
help an organization in achieving a specific level in the competitive market. The types of
business strategies and Porters business strategies have been mentioned in the assignment in
details in.

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References
3 Most Important Types of Business Strategies Business Need To Focus. 2019. Retrieved from
https://talentedge.in/articles/three-basic-types-business-strategies/
An introduction to Porter's Generic Strategies. 2019. Retrieved from
https://www.capsim.com/blog/an-introduction-to-porters-generic-strategies/
Michael Porter's Three Types Of Business Strategies. 2019. Retrieved from
https://www.valuewalk.com/2017/05/michael-porter-three-types-business-strategies/
Porter's Generic Competitive Strategies (ways of competing). 2019. Retrieved from
https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-strategies/
Porter's Generic Strategies. 2019). Retrieved from
http://www.quickmba.com/strategy/generic.shtml
Porter's Model of Generic Strategies for Competitive Advantage | tutor2u Business. 2019.
Retrieved from
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Serra, C.E.M. and Kunc, M., 2015. Benefits realisation management and its influence on project
success and on the execution of business strategies. International Journal of Project
Management, 33(1), pp.53-66.
https://www.sciencedirect.com/science/article/pii/S0263786314000519
Services, & Shop, M., Essentials, B., Guide, B., Templates, B., & Pro, F. et al. 2019. Formulate a
Winning Business Strategy in 5 Steps, Measure Impact. Retrieved from

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https://www.business-case-analysis.com/business-strategy.html
Sull, D., Homkes, R. and Sull, C., 2015. Why strategy execution unravels–and what to do about
it. Harvard Business Review, 93(3), pp.57-66.
http://www.apdata.com/upload/file/HRadar_Ed4_Why_strategy_execution_unravels.pdf
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
https://testbank24.com/pdf/Solutions-Manual-Strategic-Management-and-Business-Policy-
Globalization-Innovation-and-Sustainability-14th-Edition-Wheelen.pdf