Business Level: Business level strategies integrate into the corporate vision, but with a focus on a specific business. They guide decisions around growth, acquisitions, diversification and investments.Ģ. They form the mission and vision statement and have a fundamental impact on the firm’s long-term performance. Corporate Level: Corporate level strategies are the strategic plans of an organisation’s top management. There are three levels at which strategies are typically used: The corporate, business and functional level.Īll three levels form the strategic framework of an organization:ġ. Strategy is buying a bottle of fine wine when you take someone out for dinner. Or, as the English comedian and writer Frank Muir put it: This is a tactic to achieve the set strategy.
Their managers then need to negotiate with suppliers to reduce the costs of the electronic components used in production. In other words, it shows the path to achieve the defined vision.Ī tactic refers to the specific actions taken to reach the set goals in line with the strategy.įor example, company A’s strategy might be to become the cheapest provider in the smartphone market. While both terms are often interchangeably confused, they are two entirely different things:Ī strategy refers to an organization’s long-term goals and how it plans to reach them. How is strategy different from tactics?īefore we get into the details of building a strategy, it is vital to understand how a strategy differs from a tactic. To allow for a better and more granular understanding, I will refer to the former definition in the following chapters. While this is still accurate, it does not give a good understanding of how these goals are actually achieved. In an attempt to reduce complexity, many online sources refer to a simpler definition of strategy as:Ī high-level plan that helps a business achieve its goals. The definition is as straight forward as it can be confusing when reading it first:Ī business strategy outlines the plan of action to achieve the vision and set objectives of an organization and guides the decision-making processes to improve the company’s financial stability in a competing market.
AIM DEFINITION IN BUSINESS HOW TO
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