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... This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. ... It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.
Operational(Functional) Strategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. ...
How Strategy is Managed - Strategic Management
In its broadest sense, strategic management is about taking "strategic decisions" - decisions that answer the questions above.
In practice, a thorough strategic management process has three main components, shown in the figure below:
Strategic Analysis
This is all about analyzing the strength of businesses position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including:
PEST Analysis - a technique for understanding the "environment" in which a business operates
Scenario Planning - a technique that builds various plausible views of possible futures for a business
Five Forces Analysis - a technique for identifying the forces which affect the level of competition in an industry
Market Segmentation - a technique which seeks to identify similarities and differences between groups of customers or users
Directional Policy Matrix - a technique which summarises the competitive strength of a businesses operations in specific markets
Competitor Analysis - a wide range of techniques and analysis that seeks to summarise a businesses overall competitive position
Critical Success Factor Analysis - a technique to identify those areas in which a business must outperform the competition in order to succeed
SWOT Analysis - a useful summary technique for summarising the key issues arising from an assessment of a businesses "internal" position and "external" environmental influences.
Strategic Choice
This process involves understanding the nature of stakeholder expectations (the "ground rules"), identifying strategic options, and then evaluating and selecting strategic options.
Approximate Word count = 1553
Approximate Pages = 6.2
(250 words per page double spaced)
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