Business Strategy

Abstract

This chapter assesses strategy formulation at the business, corporate, and global levels. It discusses business strategy, which is a means of separating out and formulating a competitive strategy at the level of the individual business unit referred to as a strategic business unit (SBU). It also elaborates that an SBU is a distinct part of an organization that focuses on a particular market or markets for its products and services, devising a strategy that allows an organization to compete successfully in the marketplace and to contribute to the corporate strategy. The chapter evaluates Michael Porter's generic strategies and highlights a resource-based approach to strategy formulation. It clarifies how blue ocean strategy seeks to make competition irrelevant and analyses strategy formulation in turbulent markets and disruptive innovation as a means of capturing market share.