Business Strategy
Quick revise
Types of Strategy
Strategy- is the businesses long term plan.
Strategies help businesses achieve their aims and objectives.
Devising a strategy depends on a number of factors:
The number of markets they will compete in
If it will be UK only or international
The products and services that the business offers
There are different types of strategy
Niche strategy – concentrate on a small segment of the market that might be specialist
Mass market strategy – aim products at the entire market
SWOT
Businesses use SWOT analysis to assist them in choosing business strategies
Strengths
Weaknesses
Opportunities
Threats
Strengths and Weaknesses are internal to a business
Opportunities and Threats are external factors
Strengths are things a business is good at / areas of expertise
Weaknesses are things a business is poor at
Opportunities are areas that a firm could develop
Threats are factors that could damage the firm
By conducting a SWOT analysis, you are able to understand the firms position
and the market position
By doing this you are helping the planning process
It allows a business to think about future strategies
To be effective businesses need to be honest when identifying both their
strengths and weaknesses
Decision Making
Strategic decisions are linked to the achievement of business aims
Tactical decisions are linked to the future achievement of aims
Strategic decisions tend to be longer term
Scientific decision making – gathering data and analysing it to make a decision.
This is a rational and logical approach
Managers may also make decisions based on experience, hunches, gut feeling
and intuition
Effective decision making is often a combination of all of these methods
Quick revise
Types of Strategy
Strategy- is the businesses long term plan.
Strategies help businesses achieve their aims and objectives.
Devising a strategy depends on a number of factors:
The number of markets they will compete in
If it will be UK only or international
The products and services that the business offers
There are different types of strategy
Niche strategy – concentrate on a small segment of the market that might be specialist
Mass market strategy – aim products at the entire market
SWOT
Businesses use SWOT analysis to assist them in choosing business strategies
Strengths
Weaknesses
Opportunities
Threats
Strengths and Weaknesses are internal to a business
Opportunities and Threats are external factors
Strengths are things a business is good at / areas of expertise
Weaknesses are things a business is poor at
Opportunities are areas that a firm could develop
Threats are factors that could damage the firm
By conducting a SWOT analysis, you are able to understand the firms position
and the market position
By doing this you are helping the planning process
It allows a business to think about future strategies
To be effective businesses need to be honest when identifying both their
strengths and weaknesses
Decision Making
Strategic decisions are linked to the achievement of business aims
Tactical decisions are linked to the future achievement of aims
Strategic decisions tend to be longer term
Scientific decision making – gathering data and analysing it to make a decision.
This is a rational and logical approach
Managers may also make decisions based on experience, hunches, gut feeling
and intuition
Effective decision making is often a combination of all of these methods
