Wednesday, 28 September 2016
The difference between corporate strategy and business strategy
Hello readers, I hope your week has been fine so far. Today I will be writing about the difference between corporate strategy and business strategy. But first of all, what is strategy? It can defined as a plan designed to help achieve a particular goal(s).
Corporate strategy is concerned about your business as a whole while business strategy focuses on a unit within your business. In other words, a corporate strategy is formulated for the whole business while a business strategy is formulated for a single unit within your business.
Corporate strategy directs a business and helps your business to achieve its long term goals. It is created to fulfill the vision of the organisation. The top management is responsible for the development of the corporate strategy. It guides the decision making process within the organisation. It is concerned about the industry in which the business operates in.
Business strategy on the other hand helps the departments within your business meets their goals as different business strategies are developed for different departments. A business strategy is designed specifically for a department. It looks at ways the business can compete with each unit of the business. It focuses on specific issues such as developing a new product.
Corporate strategy will say "what business can we compete in? Business strategies will say how should we compete? Corporate strategy is concerned about the way a business can add value to itself as a whole which includes its subsidiaries if it has any while a business strategy is concerned about how a particular unit can add value to the business.
That is all for today. Thank you for reading this article. Keep checking out my blog regularly, cheers!