Business Strategy

• Strategy is a general direction set for a company and its components to reach a desired future state.
• Strategic management involves setting goals, procedures, and objectives to make a company more competitive.
• Michael Porter defines strategy as creating a unique and valued position that involves different activities from rivals.
• Strategy formulation involves decisions committing resources to specific products, markets, and technologies long-term to give competitive advantages.
• Strategy implementation requires firms to set objectives, devise policies, motivate employees, and allocate resources to execute strategies.
• Strategy evaluation is the final stage, helping managers know when strategies aren't working well.
• Strategists are most responsible for an organization's success or failure.
• Strategic analysis of a commercial enterprise has internal and external stages.
• Environmental analysis identifies opportunities or threats outside the company.
• Internal analysis evaluates key internal features, recognizing resources, capabilities, and competencies.
• Target market is the segment a business hopes to dominate, requiring clear identification.
• Customers are the end users of a company’s products/services.
• A business plan documents strategy, goals, and plans.
• Business information holds value or significance for your business.
• Capital requirement is the funds a firm needs to achieve its profit goals.
• A financial advisor helps make financial decisions and plan for the future.
• An investor provides money/resources to an enterprise, expecting financial gain.
• An executive summary is a brief summary of your business plan
• A mission statement states what your business offers, how, and to whom.
• Unique Selling Point differentiates a business from competitors.
• New product development turns an idea into a marketable product.
• Economic trend describes the long-term direction of an economy.
• Business profile gives a snapshot of a business and its plan.
• Market profile is a set of attributes of a target population.
• Product represents the item offered for sale.
• Service is intangible act or use for which a consumer, firm, or government will pay.
• Company weakness is process or resource the business lacks but needs.
• Staffing involves finding, selecting, evaluating, and developing employees.
• A marketing plan is a roadmap to organize, execute, and track marketing strategy.
• A marketing strategy is an overall plan to reach prospective customers.
• A marketing budget outlines planned spending on marketing projects.
• Packaging encloses/protects products for distribution, storage, etc.
• Advertising aims to inform, persuade, and remind.
• Media marketing reaches audiences through different media outlets.
• Competitive advantage helps attract customers and grow market share.
• Vision is where the organization aspires to go.
• Mission includes an organization’s business, objectives, and how to achieve them.
• Goal is an achievable and broad long-term outcome.
• Objective is a short-term action that defines measurable actions to achieve an overall goal.
• Financial benefits come from money, property, commercial interest, or economic gain.
• Proactive people take initiative.
• Reactive people wait for things to happen.
• Strategic analysis evaluates an organization's work environment.
• Porter's 5 Forces analyze an industry's competitive forces.
• SWOT is a strategic planning and management technique.
• Action plan is the physical part of reaching a goal
• Strategic plan focuses on initiatives to develop your business.
• Business plan details how a business is run daily.
• Competitive strategy means being different.
• Strategic planning defines an organization's mission for the future.

Strategic Intent Attributes

• Sense of direction is a general directional objective
• Sense of discovery involves discovering possibilities within
• Sense of destiny defines the overall purpose

Porter's 5 Forces

• Competitive Rivalry occurs between existing firms
• Supplier Power is the influence of suppliers
• Buyer Power is the influence of customers
• Threat of Substitution is the potential of alternative products or services
• Threat of New Entry is the potential for new competitors

7 P's of Marketing

• Product includes goods offered
• Price defines cost for consumer
• Place affects channels of distribution
• Promotion is ways of communicating with customers
• People include employees and service providers
• Process are the steps to deliver the product
• Physical evidence proves product or brand's existence

Strategy Formulation Steps

• Establish Organizational Objectives by defining aims
• Analyze Organizational Environment is reviewing internal and external elements
• Formulate Quantitative Goals that are measurable
• Establish Objectives in context with divisional plans
• Performance Analysis - evaluating actions against targets
• Selection of Strategy by choosing a method

Levels of Strategy Formulation

• Corporate level strategy guides the entire organization
• Business level strategy guides individual business units
• Functional level strategy the activities within each business unit

Universal Business Functions

• Operations is the heart of the company
• Finance guides all financial transactions
• Marketing is the face of the company
• Human Resource is the company backbone
• Management operates function of the company
• Board of Directors is the brain of the company

Types of Feedback

• Positive feedback is a supportive response
• Constructive feedback aims at improvement

Four Major Types of Capital

• Working capital funds daily operations
• Debt is borrowed money
• Equity is ownership stake
• Trading capital is used for trading activities

Main Sources of Capital

• Equity capital is ownership investment
• Debt capital is money borrowed
• Retained earnings profits reinvested in the business

SWOT Analysis

• Strength attributes within the organization
• Weakness represents internal disadvantages
• Opportunities external factors can use to its advantage
• Threats are external factors that could cause problems

Aspects of Competitive Advantage

• Edge Over Others makes you unique

S.M.A.R.T. in Goal Setting

• Specific - Well defined goals
• Measurable that can be tracked
• Achievable goals are realistic
• Relevant align with objectives
• Time bound indicates completion dates

Media Outlet Types

• Radio stations are audio outlets
• Television networks are video broadcasting outlets
• Websites found online are virtual publications or online platforms

Primary Objectives of Advertising

• To inform the public
• To persuade the public
• To remind the public

Business Entities

• Profit organizations aim to generate revenue
• Not-for-profit organizations aim to serve a community

Categories of Business Organization

• Sole proprietorship is a business owned and run by one person
• Partnership is a business owned by two or more people
• Corporation is a business with a separate legal entity from its owners

Market Segmentation Types

• Demographic factors include age, gender, income, marital status, education, and religion
• Psychographic factors include lifestyle, personality, interests, social status, and beliefs
• Geographic Factors consist of variables such as location, zip code, and area

Explore business strategy focusing on goal setting, procedures, and objectives to enhance company competitiveness. Understand strategy formulation, implementation, and evaluation stages. Learn about strategic analysis, environmental scanning, and internal analysis.