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4-1 Assignment: Strategic Plan
Billie J. Foster
Southern New Hampshire University
MBA 540 Organizational Strategy in Global Environment
Dr. Rodolfo Santamaria
February 2, 2025
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Strategic Plan
Introduction
A business strategy is a roadmap that drives an organization toward its goal. It maps a
company’s direction, clarifies its objectives, and details the actions needed to succeed (Indeed
Editorial Team, 2024). The comprehensive plan serves as a compass for decision-making,
resource allocation, and overall growth (Indeed Editorial Team, 2024). Drafting a thorough
business strategy plan is crucial for any organization, regardless of size or industry.
Formulation
Formulating a business strategy involves crafting a comprehensive plan that defines an
organization’s direction, establishes goals, and outlines the actions necessary to achieve
sustainability and success in a competitive market, with several key steps to ensure it is
successful. The key steps to formulating a business strategy involve defining the mission and
vision statements to express the organization’s purpose and strategic goals, conducting a SWOT
analysis to identify internal and external factors, setting objectives and SMART goals,
formulating corporate, business, and functional strategies, developing an action plan, and
implementing an action plan with continuous monitoring, refinements as needed, and
performance evaluation to ensure alignment with organizational strategic objectives and goals
(Indeed Editorial Team, 2024). With the strategy plan in place, it is also crucial to understand
who is responsible for each part of the process and who benefits from a well-formulated business
strategy.
Responsibilities
The formulation of a business strategy is the responsibility of the organization’s
leadership team (Shepard, 2018). This significant responsibility carries the weight of the
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organization’s future success and includes several key roles. The CEO provides direction and
vision, while the executive leadership team drafts the mission, vision, and guiding principles
(Shepard, 2018). The Strategic Planning Team supports them by gathering data, conducting
analysis, and facilitating the strategic planning process (Shepard, 2018). Meanwhile, the
department heads and managers ensure that their teams’ efforts align with organizational
objectives.
A well-formulated strategy benefits various stakeholders. Employees gain clear directions
and growth opportunities; customers receive better products and services, investors and
shareholders experience improved financial performance and return on investment, and suppliers
and partners benefit from stable and mutually beneficial relationships (Boyles, 2022). The
organization achieves sustainable growth, competitive advantage, and long-term success in
selected markets.
Corporate vs. Business Unit Strategy
Corporate strategy is broad and overarching, focusing on the overall direction and scope
of the entire organization (Messineo, 2024). It addresses questions like which industries or
markets the organization should operate in, such as technology, healthcare, or consumer goods,
how to allocate resources among different business units, and what growth initiatives to pursue
(Messineo, 2024). Senior executives make corporate decisions and involve high-level resource
allocation and market choice. Meanwhile, the business unit strategy targets specific markets and
competitive tactics within industry segments. It addresses questions such as how to compete
effectively against rivals, what products or services to offer, and how to position the business unit
to meet its objectives (Messineo, 2024). Decision-making at the business unit level involves
middle management and leaders within the specific business unit, who directly impact their
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unit’s operations, such as product development, marketing strategies, and pricing (Messineo,
2024).
Summary
A well-defined business strategy serves as the foundation for an organization’s
sustainability. Organizations can navigate the competitive landscape by clearly outlining the
mission, vision, and strategic goals, conducting thorough analysis, and implementing strategic
plans. The leadership team collaborates, supported by strategic planning and departmental
alignment, to ensure the organization meets its strategic objectives. The benefits of a strong
business strategy extend to employees, customers, investors, suppliers, and the organization
itself, highlighting the importance of strategic planning for sustainable growth and competitive
advantage.
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References
Boyles, M. (2022, October 20). What is Business Strategy & Why is it
Important? Retrieved from Harvard Business School Online:
https://online.hbs.edu/blog/post/what-is-business-strategy
Indeed Editorial Team. (2024, August 15). How To Use Strategy Formulation:
Definition, Steps, and Tips. Retrieved from Indeed:
https://www.indeed.com/career-advice/career-development/strategy-
formulation
Messineo, R. (2024, August 21). Business vs. Corporate Strategy: What's the
Difference? Retrieved from ClearPoint Strategy:
https://www.clearpointstrategy.com/blog/business-strategy-vs-
corporate-strategy
Shepard, L. (2018, September 18). Who's responsible for what? Structuring
your strategic plan. Retrieved from OnStrategy:
https://onstrategyhq.com/resources/whos-responsible-for-what-how-to-
structure-your-strategic-plan/
Shopify Staff. (2023, August 15). Strategic Planning: How To Create a
Strategic Business Plan. Retrieved from Shopify:
https://shopify.com/blog/strategic-business-plan
