For years, corporate leaders and experts have explored the concept of strategy. Despite this extensive exploration, there is no single definition of strategy.

One reason for this is that individuals interpret strategy differently. Some believe predicting the future is impossible and prefer to evolve their strategies organically. Others may thoroughly analyze the changing market or business climate and plan for future success.

Michael Porter, a renowned strategy specialist and Harvard Business School professor, highlights the importance of strategy in defining and communicating an organization’s unique position. He emphasizes determining how organizational resources, skills, and competencies should be integrated to gain a competitive advantage.

At North Star Consultants, we recognize the importance of planning for market success. To capitalize on opportunities, companies must anticipate and prepare for the future at all levels.

For example, many successful businesses have a corporate strategy driving their operations. The organization’s business units have their own strategies to compete in their respective markets. Each team should also have a strategy to ensure that its daily actions contribute to the organization’s success.

Let’s examine each level of strategy in more depth: corporate, business unit, and team.

 Corporate Strategy

Corporate strategy is the overarching strategy of an organization with multiple business units operating in various markets. It outlines how the corporation can increase the value of its business units collectively rather than individually.

Corporations achieve this by developing strong internal competencies, sharing technology and resources between business units, raising capital efficiently, and maintaining a strong corporate brand.

At this level, the focus is on how the corporation’s business units should interact and how resources should be allocated to maximize value. It’s also crucial to consider the organization’s design, as the business’s structure, personnel, and other resources affect competitive advantage and strategic goals.

Business Unit Strategy

At the business unit level, strategy focuses on competing effectively in specific markets and addresses the question, “How can we succeed in this market?” This plan must align with the corporate strategy.

Competitive analysis, including the collection of competitive intelligence, is a great starting point when creating a business unit strategy. It’s essential to consider your key competencies and how best to use them to meet customer needs. A USP (Unique Selling Proposition) Analysis can help improve your competitive position.

In smaller businesses, corporate and business unit strategies may overlap. However, if a company operates in multiple markets, each business unit must consider its strategic path.

Each business unit’s plan must align with the corporation’s overall strategy, especially when the company’s brand is significant. Employees within each unit should be able to connect their work to the unit’s strategy, fostering a productive and motivated workforce. Clearly defined mission, vision, and values are crucial at this level.

 Team Strategy

To implement corporate and business unit strategies successfully, teams across the organization must collaborate. Each team has a unique role, requiring a simple, yet effective, team-level strategy.

This team plan should contribute to achieving business unit and corporate strategies, ensuring all levels work together for organizational success. Define the team’s purpose and scope through a team charter and manage it with strategies like Management by Objectives and key performance indicators.

Efficiency is key to fulfilling strategic objectives. Thus, implementing best practices in supplier management, quality, and operational excellence is essential for an effective team plan.

 Key Points

In essence, strategy can be defined as “Deciding how we will win in the next era.”

There are various levels of strategy in business, each with a distinct focus and requiring specific tools and skills. Corporate strategy focuses on the entire corporation, business unit strategy on specific markets, and team strategy on individual teams’ contributions to organizational goals.

If you want to learn more about how North Star Consultants can help your business collaborate at a new level, contact us for a free 30-minute consultation.