Study Notes

Business Strategy & Tactics

Level:
A-Level, IB, BTEC National
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 8 Aug 2019

A distinction is often made between business strategy and business tactics. What is the difference?

BUSINESS STRATEGY

Business strategy is mainly concerned with the longer-term. Business strategy is focused on:

  • The long-term business plan, based on the business vision and mission
  • What needs to be done to achieve corporate objectives
  • What resources the business needs and to obtain and use them

In terms of business theory, business strategy is more concerned with:

  • Mission statements
  • Vision and core values
  • Organisational culture
  • Business planning
  • Growth strategy
  • Segmentation, targeting & positioning

BUSINESS TACTICS

By contrast, business tactics:

Tend to be focused on short-term issues, responding to opportunities & threats

Are often influenced by functional objectives and decision-making

In terms of business theory, the following are more relevant to the tactics employed by a business:

  • Marketing mix
  • Financial & non-financial rewards
  • Inventory management
  • Location decisions
  • Day-to-day customer service decisions
  • Recruitment, selection and training processes

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