6.2 Business strategy

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.

Corporate planning coordinates mission, objectives, strategy, resources, budgets and implementation over a longer horizon. It helps different functions work toward a coherent direction.

Planning should include assumptions, milestones, responsibilities and review points because external conditions and internal capability change.

A growth plan can connect a market objective to capacity investment, finance, staffing, marketing and measures for customer retention rather than treat each function separately.

A detailed plan can still be strategically weak if its assumptions are unrealistic or it cannot adapt.