chapter  2
25 Pages

Business Strategy and Its Formulation

ByTiffany Pham, David K. Pham, Andrew T. Pham, Mitchell Fox, Larry Rothstein, Michael Weiner, Emily Simoness, Kiran Rijhsinghani

This chapter presents the specific concept of business strategy and its formulation, discusses aspects as value creation and competitive analysis. To be a good business strategy, an organization's business strategy must fulfil three criteria: internal consistency, external consistency, and dynamic consistency. Trade-offs is necessary because different segments of the market may require the attention of different types of products, skills, organizational structures, or a combination thereof. As deliberate among the trade-offs, it is a key to choose the strategy that best fits organization. The Strategy Blade is an additional tool for business strategy and value creation, which can vary across organizations. Knowing organization's core competency also will allow to determine if organization's attempt at diversification will succeed, depending on whether or not the changes continue to be closely linked to the organization's core competency, resulting in either an adjoint or disjoint diversification strategy.