Page 17 - SBL Integrated Workbook STUDENT 2018

Concepts of strategy

Strategic planning

1.1 What is strategy?

Strategy is:

‘A pattern of activities that seeks to achieve the objectives of the
organisation and adapt its scope, resources and operations to
environmental changes in the long term.’

It involves setting the future plans of the organisation and requires a detailed
understanding of the organisation’s resources, environment and stakeholders.

Strategy can be undertaken at several levels within the organisation:

 corporate (strategic) – which businesses and markets should the business
operate in? For example – acquisitions and disposals, as well as entering or
leaving industries

 business (management) – how can each strategic business unit achieve
competitive advantage? For example – meeting the needs of customers through
offering products at a price that is lower than that of rivals

 functional (operational) – practical, day to day strategies. For example – HR,
marketing and IT strategies.

Illustrations and further practice

Now try TYU question 2.

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