Unit 6 – Business Strategy

If you don't drive your business you will be driven out of business.

B.C. Forbes (1880-1954) founder of Forbes magazine

Key topics

* Business strategy resources

* Summary table of key business strategy concepts

WHAT IS BUSINESS STRATEGY?

There is no new content in Unit 6. All preceding Units have ended with a section on business strategy. In short, Unit 6 is about synthesizing the different business theories, concepts and techniques covered in this book. It is about devising a plan to achieve the long-term goals of an organization. The idea behind each section on Business Strategy is to allow students to apply the different techniques that will help to make more informed decisions. Business Strategy is explicitly assessed in Section C of Paper 1 for Higher Level students.

There are three stages to business strategy:

Stage 1: Strategic analysis — determining the current position of an organization.

Stage 2: Strategic choices — determining where the organization is headed.

Stage 3: Strategic implementation — determining how the organization should get there:

The case studies in this textbook have questions directly related to business strategy; there are further examples in the IB Business and Management syllabus guide (pages 40-43).

Formulating strategy

Business strategy should focus on, among other issues:

* Organizational aims and objectives

* Stakeholder interests

* Resources (human, capital and financial)

* Strengths (and weaknesses) to be developed

* The long term

* The external business environment (e.g. state of the economy)

* Customers and customer service

* Quality management

* Motivation of the workforce

* Cost control.

Resources

Two useful websites on business strategy:

http://www.strategy-business.com