it concerns strategic decisions regarding product choice, competitive advantage, customer satisfaction, etc. In reverse, business strategy it relates to the general objective and scope of the business to meet stakeholder expectations.
The strategy can be defined as the integrated plan or a trick used to achieve success in a particular business. In commercial terms, the strategy seen as a means of achieving the company's goal. In a large company, there are multiple divisions, units or departments, which are engaged in a number of companies. In such an organization, there are three main levels of management, ie corporate, corporate and functional.
At different levels of management, different types of strategies are formulated by the competent authority. People commonly juxtapose business strategy and business strategy, so here we present the differences between the two terms.
|Sense||Business Strategy the strategy defined by business managers to strengthen the overall performance of the company.||The corporate strategy indicated in the mission statement, which explains the type of activity and the ultimate goal of the company.|
|Created by||Medium level management||High level management|
|Nature||Executive and housekeeper||Decisive and legislative|
|Relates to||Selection of the plan to achieve the objectives of the organization.||Company selection in which the company should compete.|
|Offers with||Operative unit or particular division||Whole business organization|
|Term||Short-term strategy||Long-term strategy|
|Focus||Compete successfully on the market.||Maximize profitability and business growth.|
|Main strategies||Cost leadership, focus and differentiation||Expansion, stability and scaling.|
Definition of the business strategy
By the term business strategy we mean the action plan, created to achieve a particular goal or set of goals of the organization. formulated in reference to the concern's business strategy, which reflects the plans of the entire company. It helps to inform and attract investors about the new company, to convince them to invest in the business. In addition, it is used as a tool to assure creditors of the firm's credibility.
The corporate strategy highlights the market opportunities that the company wants to explore, the steps to run it and the resources needed to put it into practice. formulated by mid-level management, which focuses on what is most important for the company to achieve the desired end.
Strategic management levels
Definition of the business strategy
The corporate strategy can be explained as the management plan formulated by the highest level of the organization, to direct and manage the entire corporate organization. He alludes to the general plan that guides the company towards success. Thus, the more suitability in the degree of strategy at the company level, the greater the chance of success for the company on the market.
Corporate strategy is the essence of the strategic planning process. It determines the company's growth objective, i.e. the direction, timing, extent and pace of the company's growth. It highlights the scheme of corporate moves and objectives regarding strategic interest, in different business units, product lines, customer groups, etc. It defines how the company will remain sustainable in the long term.
Key differences between business strategy and business strategy
The fundamental differences between corporate and corporate strategy are explained in the following points:
- Business strategy can be seen as the strategy designed by business managers to improvise the overall performance of the company. On the other hand, the corporate strategy is the one expressed in the company's mission statement, which describes the type of activity and the ultimate goal of the organization.
- The corporate strategy structured by a mid-level management that includes division, unit or department managers. Conversely, the corporate strategy formulated by senior managers, namely the board of directors, the chief executive officer and the chief executive officer.
- The nature of the executive and government corporate strategy, while the deterministic and legislative corporate strategy.
- While business strategy is a short term strategy, long term business strategy.
- Business strategies aim to select the business plan to achieve the organization's goals. On the other hand, the corporate strategy focuses on selecting the business in which the company wants to compete on the market.
- The business strategy concerns a particular unit or division. Unlike the corporate strategy which focuses on the entire organization, comprising various divisions or business units.
- The business strategy focuses on successfully competing in the market with other companies. On the contrary, the corporate strategy emphasizes the increase in profitability and the growth of the business.
- The corporate strategy has an introverted approach, that is, the internal functioning of the organization. On the contrary, the corporate strategy uses an extroverted approach, which connects the company to its environment.
- At the business level, the strategies that are used by the organization include: Cost Leadership, Focus and Differentiation. On the other hand, at the company level, the strategies used are Expansion, Stability and Reduction.
The strategy the management plan to improve the company's performance and gain a competitive advantage. At the company level, the strategies concern more the development and support of the competitive advantage for the products offered by the company. He takes care of positioning the company against competitors on the market.
On the contrary, at company level, the strategy aims to formulate strategies to maximize profitability and explore new business opportunities.