Business strategy
Business strategy concerns how a business competes and creates value for its chosen customers and other relevant stakeholders. It links choices about markets, customer needs, the basis of competitive advantage and the resources and activities required to deliver it. A coherent strategy involves priorities and trade-offs, rather than a wish to improve every measure simultaneously. Its assumptions and results need review as conditions change.
Worked example
A business chooses to serve small manufacturers needing rapid repairs, offering dependable local response rather than the broadest product range. Staffing, spare-parts inventory and pricing are designed around that choice.
Common mistake
A target such as increase profit is an objective, not a complete strategy. Explain the choices and actions through which it will be achieved.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Supporting | September 2026–June 2027 |