At the top sits the firm's overall (or generic) business strategy. The subject business strategy is easier to understand-to make coherent-by viewing each one as part of a strategic framework. The firm's many strategic plans interact, but they have different objectives and different action plans. And, a firm's financial strategy is something different from its pricing strategy, or operational strategy. Strategy discussions are sometimes confusing because most firms have many strategies, not just a single "business strategy." Analysts sometimes say marketing strategy when they mean the firm's competitive strategy. For most firms, therefore, the highest goal can be stated by referring to "profits." The generic business strategy, therefore, aims first to earn, sustain, and grow profits. In practical terms, however, firms achieve this objective only by earning profits. For most companies that is the firm's reason for being. In business, the strategy begins with a focus on the highest level objective in private industry: Increasing owner value. Formulating Strategy Is All About Meeting Objectives (Goals) The approach for Singapore Airlines focuses instead on brand image for luxury and quality service. In competitive industries, each firm formulates a strategy it believes it can exploit.
Southwest Airlines (in the US) and Ryan Air (in Europe), for instance, have strategies based on providing low-cost transportation. Many different strategies and business models are possible, even for companies in the same industry selling similar products or services. They also Reflect the Firm's Competitors and Its Market. Strategies Reflect the Firm's Strengths, Vulnerabilities, Resources, and Opportunities. Strategy in business-like strategy in chess-must have tangible objectives, a realistic plan for reaching them, and accurate knowledge of strengths and vulnerabilities.
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