This document introduces the concept of business strategy through defining what it is and what it is not. It explains that a business strategy is a plan for how to achieve organizational goals by making specific choices based on both internal and external factors. Goals drive strategy, which then drives tactics used for execution. Common types of strategies are outlined as growth, innovation, cost leadership, client service, and diversification. The document concludes by having the reader discuss and determine the best future strategy for an organization based on considering its industry, goals, capabilities, customers and competitors.

1. Introduction to
Business Strategy
- Nitin Tyagi

2. At the End of This
Brief Lesson
• Explain the concept of business
strategy
• Understand what is NOT business
strategy
• Understand common types of business
strategies

3. What’s in it for you?
• Sound business decisions
• Budding entrepreneurs
• Big picture thinking

4. Is this
Strategy?

5. What is NOT
Strategy? • Goal
• Tactic
• Vision Statement
• Mission Statement
• Is not about being the best

6. Let’s define
business
strategy now
• Plan of how to achieve a goal
• Set of choices
• Very specific and concrete
• Depends on industry(external) and
organizational(internal) factors
• Enables an organization to compete

7. Relationship with Goal and Tactic
Tactic Strategy
Strategy Goal
• Goal = What you want to achieve?
• Strategy = How you could achieve your goal?
• Tactic = Action to execute strategy
Tactic drives strategy & strategy drives goal.

8. Example
Online Retailer
Goal: Maximize sales during the holiday
season.
Strategy: Introduce additional new products
during the holiday season.
Tactic: Run an advertisement campaign to
promote new products.

9. Types of Business
Strategies
• Growth/Acquisition: Customers or markets
• Innovation/Differentiation: New products and
services to market
• Cost Leadership: Short-term cost minimization
• Client Service: Consistent and stable client service
• Diversification: New products and services to
existing portfolio.

10. Factors in
Determining
Strategy
Goals of the
organization
Industry of the
organization
Level of
competition
Internal Resources
of the organization
Customers and
their preferences

11. Now let’s
determine the
future strategy
of your
organization
• Group discussion: Decide the best business
strategy (innovation, cost leadership, client
service, diversification etc.) for an
organization of your choice. Pay attention
to the following:
• Industry of the organization
• Goals, mission and vision of the
organization
• How best to achieve the goals, mission
and vision
• Consider external factors such as
customers, competitors, etc.
• Consider internal capabilities of the
organization.

12. Questions?