•Strategy is the method by which a business aims to achieve its objectives, encompassing formulation and implementation phases.
•Formulation involves creating a business plan, while implementation is the execution of that plan in a flexible manner.
•SMART objectives (Specific, Measurable, Achievable, Relevant, Time-bound) ensure that business goals are realistic and attainable.
•Corporate strategy focuses on overarching decisions that affect the entire business, such as financial performance and resource allocation.
•Strategic direction is the path established to achieve corporate objectives, including a mission statement and measurable goals.
•Divisional strategy translates corporate objectives into actionable plans within specific divisions, tailored to meet market demands.
•Tactical decisions are medium-term choices made by middle management to meet strategic objectives, such as recruitment or outsourcing.
•Functional strategy is specific to operational areas like marketing or HRM, supporting corporate and divisional strategies.
•SWOT analysis identifies internal strengths and weaknesses, as well as external opportunities and threats, guiding strategic planning.
•The four stages of SWOT involve internal and external analysis, creating a SWOT table, and using the findings to develop strategies.
•Strengths are advantageous features of a business, while weaknesses highlight areas needing improvement.
•Opportunities are external conditions that could enhance business performance, whereas threats are external challenges that could hinder success.
•Porter's Five Forces model helps businesses understand competitive dynamics and profitability potential in their industry.
•Barriers to entry can protect existing businesses from new competitors, impacting market dynamics and profitability.
•Supplier power influences price structures; high supplier power can decrease business profit margins, while low power can enhance profitability.
•Effective strategy development requires a comprehensive understanding of both internal capabilities and external market conditions to maximize success.

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