1 Define The Terms Strategy Explain

1. Define the terms ‘strategy’. Explain the following:
a) Corporate strategy
b) Business strategy
c) Functional strategy

Once you have your vision you have to see how that vision can be executed. Here, is where strategy comes in. Strategy means the grand plan and the term is borrowed from the military which distinguished between the grand plan and actual action by calling the former strategy and the latter tactics.
Strategy in organisation can be divided in to three.
Corporate strategy
Business strategy
Functional strategy.

Corporate strategy
Generally a consortium will have several businesses and each business may be run by an independent company. The corporate head quarters will have grand plan on how each business should operate. For example, Tata motors should develop nano car and TCS should develop its software business to other nations.
The grand plan created by the corporate head quarters is called corporate strategy. It lays down the grand plan to be followed by each business under the corporate head quarters. In a small business it would be inappropriate to call as corporate strategy but the business had some strategy to be executed and perhaps we call as business strategy.

Business strategy,
Every business small or big will have business strategy. This is the grand plan for doing business