BUSINESS

STRATEGY
Introduction
STAGES OF BUSINESS STRATEGIC PLANNING

ENVIRONMENTAL
1 ANALYSIS
DEFINITION OF MISSION,
2 VISION, AND VALUES
STABLISHMENT OF
3 OBJECTIVES

4 FORMULATION OF
STRATEGIES
IMPLEMENTATION
5 OF STRATEGIES

6 MONITORING AND
CONTROL
 The need for
strategic plannig
In a highly competitive reality, companies need to:

Ensure sustainable success

Create a competitive advantage

Have a well-defined strategy that considers:

mission and vision, objectives, actions

Be able to make the best decisions and adapt to changes

 ORIGIN OF
THE TERM

From the military fields: Von Neumann and Morgenstern's game

theory in 1944. It refers to competition; an action against the
opponent in order to achieve previously established
objectives.

In the business field through the theories of Chandler (1962),

Andrews (1962), and Ansoff (1976), who define strategy as the
ability to jointly determine the objectives established by the
company and the lines of action that will be developed with
the aim of achieving them. Ideal future of the company.
 THEREFORE
...
Business strategy refers to the set of actions that will lead us
to achieve the established goals and to the achievement of a
competitive advantage that remains over time. Every
business strategy must be planned according to the objectives
and needs of the different groups participating in the
company, both internal and external. The actual information
society means constant change, so companies need capabilities
to adapt and proactive strategic management.
 CHARACTERISTICS AND
FUNCTIONS OF STRATEGY

When we decide to implement a corporate strategy in our

company, we must consider that we need to respect a
series of items
Decisions must be coherent.
Objectives should be established over time and
provide the appropriate means to achieve them.
Define the type of company.
Environment conditions the company, and may even
determine the development of the business strategy.
Optimization of the company's competitive position.
 KEEP IN MIND THESE PREMISES

It's the means or ways (strategies) that allow us to achieve

(effectiveness) the objectives (ends).
To achieve the objectives, we must use the least amount of
resources in the shortest possible time (efficiency).
Strategies must be clear and understandable to everyone.
The strategies proposed must be aligned and consistent with
the values, principles, and culture of the company.
During the design of the strategy, we must appropriately
consider the capacity and resources of the organisation.
The strategy must pose a challenge for the company.
Strategies must be executable in a reasonable time.
 DIFFICULTIES

Lack of support and approval from top management

Lack of understanding and adaptation of organisational
areas, as well as personnel.
Limited capacity to manage change.
Lack of commitment and approval of the strategy at different
levels of the organisation.
Deficient and inadequate communication.
Lack of a control system in the execution, absence of
performance indicators (measurement and monitoring of the
progress)
 HOW TO FACE
DIFFICULTIES

Broad time horizon.

Use SMART goals and the means to achieve them.
The goals and policies go in the same direction.
Concentration of efforts.
Felixibilty.
Feasible with the situation and capabilities of the company,
Based on coordinated and committed leadership.
Creation or maintenance of the company's competitive
superiority.
 HOW TO KNOW IF THE
STRATEGY IS SUCCESSFUL

Measurement of the benefits

Achieved and shared with all stakeholders

Primary and secondary stakeholders, depending on
their influence towards the company.

Using KPIs: Key Performance Indicators

CORPORATE STRATEGY
Related to the overall objective and scope of the organisation to
meet the expectations of owners and other stakeholders in the
organisation. Corporate strategies allow us to:

Identify the businesses in which the company should be

involved in the future.
Know the products to offer and the markets to serve.
Evaluate the environment, resources, and objectives of the
company.

Used to consider general issues and not be change frequently.

 BUSINESS STRATEGY

Business strategy is the way in which a business competes in a

particular sector. They deal with issues such as:

Pricing and effectiveness in manufacturing and advertising.

Business strategy is mainly based on obtaining a competitive
advantage in the market.

Should be used to address specific issues

It can be changed regularly to respond to changes in the market.