A strategy is a plan for achieving a long-term or overall goal. It is a general plan that is designed to achieve the goal, even if circumstances are uncertain. This article will describe the three types of strategy and what each one should entail. In addition, we’ll look at competitive strategies. Hopefully, this article will help you decide which type of strategy is right for your organization. And while each one is important to any business, it’s essential to know the difference between them.
Business unit strategy
Business unit strategy is the process of turning a vision into a realistic plan for the business unit. While it is essential that the goals are inspiring and achievable, it is also important to create measurable performance targets. Performance goals should include financial and non-financial metrics, and must bridge the present reality with the desired future state. These targets should be based on the following areas: marketing, customer development, supply chain, talent development, M&A, and initiatives, among others. Ultimately, business objectives should also include stakeholders, owners, and the process of mobilization. A well-developed model will also incorporate external communication and stakeholder enrollment.
Corporate strategy
A corporate strategy is a plan that determines a company’s future. It may involve diversification, but also maintains the status quo. After a period of expansion, a corporate strategy can determine the next phase of the organization. It may also involve retrenchment or turnaround. During a turnaround, a business may sell off parts of itself or spin off other parts. It may also involve dramatic cost-cutting exercises.
Operational strategy
An operations strategy is an important tool for a business. The goal of the plan is to help the business achieve its goals. The plan can be outlined into several segments, such as product family, service, or area of operation. It should be easy to read and easy to understand, so consider using bulleted lists or headings. To help your audience understand the plan, make it readable by using an index, subheadings, or flowcharts. Lastly, don’t forget to include an operations budget.
Competitive strategy
There are three basic types of competitive strategies. These strategies help companies win a competitive advantage over competitors. They focus on creating or driving a competitive advantage, reconciling economic and internal business issues, and selecting an analytical framework. The strategies for each type differ from each other, but they all involve achieving a sustainable advantage over the competition. For example, the operational excellence strategy is suitable for businesses operating in mature markets where customers prefer price over quality. The volume-oriented business model encourages these strategic disciplines.
Personal strategy
A personal strategy is an individual’s plan for success in life. It can increase life satisfaction and happiness, boost confidence and energy, and foster spirituality. By creating a personal strategy, you can work toward specific goals and extend your life by maximizing your own and others’ achievements. You can also use a personal strategy to develop guiding principles that will guide you throughout your life. To create a personal strategy, you should first consider your goals and objectives.