ÉCOLE DES HAUTES ÉTUDES COMMERCIALES- KOLEA
MODULE: ESP/ ENGLISH FOR MARKETING AND LOGISTICS
TEACHER : BENANTAR IBTISSEM
BUSINESS STRATEGY
Introduction:
A business strategy is a long-term plan of action designed to achieve specific
goals or objectives, ensuring sustainable competitive advantage and organizational
success. It involves making decisions on resource allocation, market positioning, and
operational efficiency to outperform competitors and meet stakeholder expectations.
According to Michael Porter (1996), business strategy is about "deliberately
choosing a different set of activities to deliver a unique mix of value." Meanwhile,
Johnson, Scholes, and Whittington (2008) define it as "the direction and scope of
an organization over the long term, which achieves advantage in a changing
environment through its configuration of resources and competences."
Key Components of Business Strategy:
An effective business strategy consists of several components:
1. Vision and Mission: The vision captures the organization's long-term ambitions,
whereas the mission states its purpose and core objectives
2. Competitive Advantage: Achieved through cost leadership, differentiation, or
niche focus
3. Strategic Objectives: Measurable objectives facilitating progress monitoring
4. Resources: Human resources, finances, and assets needed to execute the
strategy.
Types of Business Strategies:
There are 03 levels of strategy. These strategy levels operate at different levels of
management:
1. Corporate Strategy: Also known as the Top Level Management, it is about the
choice of the direction that the company must adopt. It involves tactics at the
highest level. It exists in large organizations and is less common in small and
medium enterprises.
2. Business Strategy: Or the Middle Level Management focuses on tactics that
make an organization relevant to its industry. This level concerns developing
competitive advantage strategies. Their aim is to offer unique values to
customers that competitors do not, and gain a competitive advantage. In other
words, differentiate their business from their competitors to ensure they control a
considerable portion of the market.
3. Functional Strategy: Also called Operational Level Management, it aims to
create tactics that support business-level strategies within functional departments
such as marketing, human resources, production, technology… It emphasizes
the individual tasks of employees and their contributions towards corporate goals.
Importance of Business Strategy:
An effective business strategy is crucial for some reasons:
1. Simplify decision-making: A well-defined strategy framework allows leaders
to make wiser decisions when faced with uncertainty.
2. Set direction and priorities: A good strategy unifies all departments and
workers to common objectives, with least duplication of efforts
3. Align all departments to achieve the same goal.
4. Optimizes Resource Allocation: Strategies help prioritize investments in key
areas such as R&D, marketing, and talent acquisition
Difference between a Plan and a Strategy:
While the terms "plan" and "strategy" are often used interchangeably, they
play distinct roles in business and management.
A plan is a detailed, step-by-step outline of actions to accomplish a specific short-
term objective. It is concerned with how work will be carried out, from the timelines
to the resources and responsibilities.
Strategy on the other hand, refers to the master plan that the company implements
to secure a competitive position in the market and achieve the desired business
objectives.
Aspect Plan Strategy
Purpose How to execute tasks Define the goals
Short to medium term (weeks,
Time Horizon Long-term (years)
months)
Flexibility Rigid, follows steps strictly Adaptable to changes
Scope Narrow (specific actions) Broad (overall direction)
References:
Mintzberg, H. (1994). The Rise and Fall of Strategic Planning.
Porter, M. (1996). What is Strategy? Harvard Business Review.
Collins, J., & Porras, J. (1996). Built to Last. Harper Business.
Grant, R. (2021). Contemporary Strategy Analysis. Wiley.
Porter, M. (1985). Competitive Advantage. Free Press.
Kaplan, R., & Norton, D. (1992). The Balanced Scorecard. HBR.