Business strategy acts as a planning and organizational tool, helping companies set goals and objectives for long-term growth and development. Business strategy exists in two primary types, which are generic or general strategies and competitive strategies. Strategies act as outlines, helping businesses set goals several years out, then plan necessary actions, expenditures and tools necessary for achieving those goals.
Small companies and large organizations alike use business plans for managing finances and allocating resources. These plans typically cover periods between three and five years. Business strategies serve as forecasting tools, letting businesses determine potential scope of expansion, whether that entails opening up additional locations or producing higher volumes of products. Business strategies involve making future projections for growth and activity by considering past performances and fundamental values.
Strategy meetings often involve revisiting mission and value statements, which set forth basic business goals. General strategies set forth general plans for business growth, while competitive strategies identify specific means of reaching those targets. These strategies involve a plan of action, such as ramping up production or introducing products. Competitive strategies help companies outperform rivals, accomplished by offering similar products at lower prices or producing different products. Top management oversees creation and implementation of business strategies, which require coordinated efforts among internal departments.