The business strategy development process

Abstract

Step Three in the process of strategic planning is the definition, in parallel, of the various business strategies, based on the target market positions for each business determined in the previous step. In Step Two the approximate investment budgets for each business were also determined, and these budgets now represent the most important limiting conditions for the development of the business strategies. Chapter 12 emphasized that target market positions and planned investment budgets must be seen as provisional in character, as one possible outcome of the process of developing business strategies may be that the financial means available is shown to be insufficient for meeting the targets. If this happens, the corporate strategy has to be revised.