Strategic Management: Formulation and Implementation

Generic Business Unit Strategies

Once the firm has decided at the corporate level in which business it wishes to operate, and has decided how to enter the business, it must decide how to compete in that business.

This chapter is concerned with helping managers identify, select, and implement business strategies. The intent is to provide decision makers with concepts, methods, and procedures by which they can improve the quality of their business strategic decision making.

The chapter defines a business strategy and discusses its components, particularly the idea of a sustainable competitive advantage, how it developed and where it fits in the evolution of management practice. The final section will consider relationship of business and corporate strategies.

What Is A Business Strategy?

Sometimes business strategy is called a set of "Rules for developing the firm's relationship with its external environment: what products-technology the firm will develop, where and to whom the products are to be sold, how will the firm gain advantage over competitors" (Igor Ansoff, Edward McDonnell, 1990).