Strategic Management: Formulation and Implementation

Strategic Business Elements

A business strategy specification includes a determination of:

The various elements of business strategy are shown in Figure A. All six elements of the strategy concept can be capsuled into two core-elements:

  1. the product-market investment decision which encompasses the product-market scope of the business strategy, it investment intensity, and the resource allocation over multiply business.
  2. the development of a sustainable competitive advantage to compete in those markets. This core concept encompasses appropriate functional area strategies matched with underlying assets, skills, and/or synergy.

The central thrust of business strategy is how to build and strengthen the company's long-term competitive position in the marketplace. Therefore, business strategy is concerned principally with: