Strategy, as we have identified, refers to an organization's long-term goal or roadmap and how it plans to achieve them. Or, the path that the organization will take towards its objectives. Rather, tactics refer to the specific set of actions taken to achieve organizational objectives or strategy. So what is a business strategy? The strategy is different from the vision, the mission, the goals, the priorities and the plans.
It is the result of decisions made by executives, about where to play and how to win, to maximize long-term value. At this level, vision and objectives become concrete strategies that inform how a company will compete in the market.
Business strategiessucceed when they are directly responsible for growth and for improving competitive or financial performance. Product, brand, marketing or operations strategies are just a few examples that contribute to the success of a company's overall generic business strategy.
That's why managers should make sure to periodically review the alignment between low- and high-level strategies. The success of a strategic plan can be evaluated by monitoring a number of key performance indicators (KPIs). While multiple strategies entail the risk of conflicts between priorities and objectives, these risks can be reduced if properly managed. Core values and mission are then taken into account when designing lower-level strategies, such as operational or marketing strategy.
Without clear and coherent answers to these three questions, you may have an exciting vision, a convincing mission, clear objectives and an ambitious strategic plan with many actions underway, but you won't have a strategy. The formation of these lower-level strategies that fall under a generic business strategy is called a strategy framework. However, functions such as marketing or finance will not effectively contribute to this generic strategy unless it translates into more specific lower-level strategies.