6.2.1—Business strategy development

Business strategy is a coherent long-term approach to achieving objectives. It links analysis of the environment and capabilities to choices about markets, resources, advantage and risk.

A strategy is stronger when assumptions are explicit, alternatives are considered and implementation is feasible. A plan that ignores capability is only an intention.

A retailer using customer data and competitor evidence may choose a focused online segment, invest in fulfilment and define indicators for whether the strategy is working.

A framework or slogan is not a strategy until it changes resource allocation and action.