The difference between corporate strategy and business strategy

Mondo Military Updated on 2024-02-01

Strategy is divided into corporate strategy and business strategy. The company's strategy is to choose what to do or not to do, that is, to choose the track; Business strategy is how to do the selected business, that is, how the selected business will grow.

In a group company, subordinate enterprises often make a strategic mistake, that is, to replace the business strategy of the enterprise with the corporate strategy of the group. When the group decides which business to do and hands over this task to the subordinate enterprises, the subordinate enterprises regard "doing this business" as a job, ignoring the group's decision to "do this business" to themselves, and the enterprise becomes the person in charge of this business, and "how to do this business" is the first question to be answered by the management of the enterprise, rather than burying their heads in it at the beginning. The seemingly firm execution of the group's strategic decision is essentially abandoning the dominant position of the business and replacing strategic laziness with tactical diligence.

As far as I can see, the strategy department of many companies is not playing the role of "brain", but happily playing the role of "hands and feet". Either wait for the leader's ideas and opinions to come out and then implement them. It is rare to think and analyze comprehensively from the aspects of industry, external environment, internal conditions, etc., and put forward strategic thinking; Either do very specific work, collect aggregate data, write compilation reports.

Business strategy is the answer to how to create value and achieve organic growth; It is to demonstrate whether the proposed value creation model is in line with economic trends and national directions; It's about exploring the path to achieve this type of growth.

Shandong Qilian faces the high-level management, middle-level management, and grass-roots execution of enterprises, and outputs a series of consulting project services, which is to popularize compulsory management services for growing enterprises.

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