This is a complete summary of MNM2604
Business to Business Marketing 3rd Edition
CHAPTER 3 from the prescribed textbook. This
can be used for assignments, examinations or
while you are waiting for your textbook.
Undergrad2024
BUSINESS TO
BUSINESS
MARKETING
CHAPTER 3 SUMMARY
, Business to Business Marketing. 3rd Edition
Summary Chapter 3
Defining strategy and strategic management
Strategic management therefore describes the entire decision-making process that supports the
formulation and implementation of strategy. All possible inputs are gathered and evaluated and finally
used to make the best strategic decisions. Strategic management therefore describes management’s
main task, namely determining the direction in which the business should move with due consideration for
environmental influences (ie internal strengths and weaknesses and external threats and opportunities).
Levels of strategy
To understand strategy in business, the three levels of strategy must be defined. All three of these levels
need to be considered by organisations. The chief levels of strategy that dominate most large
organisations, are corporate strategy, business-level strategy and functional strategy.
Corporate strategy - identifies the area of business that the organisation will compete in, as well as the
resources that the organisation will use to compete in that particular area of business. Corporate strategy
defines the markets in which a company competes, preferably in a manner that uses resources to convert
distinctive competencies into competitive advantages. Competitive advantages can be defined as the
ability to deliver superior value to the market for a protracted period of time. Competitive advantages for
an organisation could include, for example, superior product benefits, low-cost operations, global
experience or even legal advantages.
Business-level strategy - establishes the most appropriate way for an organi-sation to compete in a
specific industry. The question is: how do we gain (a sustainable) competitive advantage over rivals and
Page 1 of 7
Business to Business Marketing 3rd Edition
CHAPTER 3 from the prescribed textbook. This
can be used for assignments, examinations or
while you are waiting for your textbook.
Undergrad2024
BUSINESS TO
BUSINESS
MARKETING
CHAPTER 3 SUMMARY
, Business to Business Marketing. 3rd Edition
Summary Chapter 3
Defining strategy and strategic management
Strategic management therefore describes the entire decision-making process that supports the
formulation and implementation of strategy. All possible inputs are gathered and evaluated and finally
used to make the best strategic decisions. Strategic management therefore describes management’s
main task, namely determining the direction in which the business should move with due consideration for
environmental influences (ie internal strengths and weaknesses and external threats and opportunities).
Levels of strategy
To understand strategy in business, the three levels of strategy must be defined. All three of these levels
need to be considered by organisations. The chief levels of strategy that dominate most large
organisations, are corporate strategy, business-level strategy and functional strategy.
Corporate strategy - identifies the area of business that the organisation will compete in, as well as the
resources that the organisation will use to compete in that particular area of business. Corporate strategy
defines the markets in which a company competes, preferably in a manner that uses resources to convert
distinctive competencies into competitive advantages. Competitive advantages can be defined as the
ability to deliver superior value to the market for a protracted period of time. Competitive advantages for
an organisation could include, for example, superior product benefits, low-cost operations, global
experience or even legal advantages.
Business-level strategy - establishes the most appropriate way for an organi-sation to compete in a
specific industry. The question is: how do we gain (a sustainable) competitive advantage over rivals and
Page 1 of 7
