All articles

Strategy Planning 7 min read

What Is A
Business Level
Strategy? How
To Create It +
Examples
Download our
free Business
Download this template
Strategy Plan
Template

Need Help?
Article by Tom Wright — Published June 13, 2023

Many leaders put a lot of effort into strategic

planning, but their grand strategies fall short.
More often than not, the issue lies not in the
strategy they formulate, but in the strategy
they overlook—the business level strategy.

This strategy concentrates on the execution of

initiatives tailored specifically to a business
unit. It's like “the middle level” of strategy and
as it often happens with middle-level things, it
remains overlooked in the shadow of the bigger
picture.

Gartner’s survey shows that 67% of key

functions at a company are not aligned with
business units and corporate strategies. It also
shows that 67% of employees do not
understand their role when new growth
initiatives are launched. These findings suggest
that most companies focus primarily on their
overarching, high-level strategies, neglecting
how these strategies translate to lower levels
and functions.

Thinking in terms of strategy levels is a good

way of breaking down your overall strategy
into manageable parts. This approach makes it
easier to understand who's responsible for
what and how the strategy should be carried
out.

Free Template
 Download our free
Business Strategy
Plan Template

Download this template

In this article, we'll walk you through the

components of a strategy at a business level.
We'll show you how to write a perfect strategic
plan for your business and then apply it,
ensuring all the pieces fit together seamlessly.

🎁BONUS: Download Your Strategy Levels

eBook. It's a comprehensive guide that covers
all three levels of strategy and will show you
how to create both corporate and business
strategies.

What Is A Business
Level Strategy?
Business level strategy is a sum of the
strategic planning and implementation
activities that set and steer the direction of
an individual business unit. These activities
will generally include how to gain a competitive
advantage and create customer value in the
specific market the business unit operates in.

As a result, organizations with only one distinct

business will often combine business strategy
with corporate strategy as a single strategy
level.
 Product Solutions

Resources Support Enterprise Log in Book a demo

Pricing
Execute strategy like
Porsche, AstraZeneca &
UNICEF.
Try Cascade, the #1
Strategy Execution
platform.

Get started for free 3 Strategy Levels Pyramid

Benefits Of A Business
Strategy
Before we dive deeper into business strategy,
let's quickly discuss why you should have it
regardless of your business model or company
size. A well-defined business strategy:

Provides a clear roadmap and purpose,

guiding decision-making and resource
allocation.

Helps align the efforts of different

departments and teams, fostering
coordination and synergy.

Enhances competitive advantage by

identifying unique value propositions and
 differentiation opportunities.

Aids in identifying and capitalizing on market

opportunities while mitigating potential
strategic risks.

Improves organizational efficiency, promotes

innovation, and enables effective
measurement and performance evaluation.

Ultimately, a well-planned and executed

business strategy can lead to sustainable
growth, profitability, and long-term success.

Difference Between
Corporate Level
Strategy And
Business Level
Strategy
There seems to be a lot of confusion
surrounding the difference between corporate
level strategy and business level strategy, so
let’s clear things up and get our definitions
straight.

A corporate level strategy comes into play

when an organization has multiple businesses
operating in different markets. It sets the
overall direction for the entire organization. It
decides which markets to compete in, how to
allocate resources across the organization, and
similar big-picture things.

On the other hand, a business level strategy

zooms in on a specific business within the
organization. It focuses on creating a game
plan tailored specifically for that business unit
to achieve success in its corner of the market.

To reiterate, a corporate level strategy is about

steering the entire organization, while a
business level strategy is about guiding a
specific business unit to thrive in its market.

To help make the difference between the two

levels clearer, let’s look at the example of a
bank below and how they use strategy levels in
their organization.

Example of strategy levels within a Bank

Types Of Business
Level Strategies With
Examples
To better understand how business level
strategy differs from other strategy levels, it’s
useful to look at some business level strategy
examples.
When organizations are deciding on the best
strategy for a specific business level, they
typically consider five types. Let's take a closer
look at each of them and see what kind of
competitive advantage they offer:

Business Level Strategy Types diagram

Cost Leadership
A cost leadership strategy is all about offering
products at a lower price than your
competitors. To become cost leaders,
businesses employ economies of scale and
various tactics such as improving facilities,
investing in tools, reducing overhead costs, and
minimizing expenses related to R&D and POS
operations. The ultimate goal is to achieve the
lowest cost for your product or service.

Differentiation
Rather than focusing on lower costs and
passing the savings onto customers,
differentiation strategies emphasize the
development and marketing of products in a
manner that provides greater value to
customers and focuses on unique features that
warrant a higher price point.

The most famous example of differentiation is

Apple, which applies this strategy across all
business units (laptops, smartphones, tablets,
etc.). Apple has heavily invested in R&D,
customer service, and marketing, successfully
carving a niche that allows them to charge a
premium price for their products without
compromising market share.

💡If you're considering pursuing a

differentiation strategy, McKinsey's Three
Horizons of Growth is a great framework to
use.

Focused cost leadership

Businesses can concentrate their efforts by
targeting a niche market or even a subset of
that niche to further reduce costs.

For instance, a tool manufacturer might choose

to focus their cost leadership strategy solely on
the professional tradesperson market.

By narrowing their focus, companies can better

understand their customers' needs and create
value more efficiently.

Focused differentiation
A focused differentiation strategy involves
standing out from competitors while
concentrating efforts on a smaller subset of
their customer base.

This might seem counterintuitive, but deeply

understanding a smaller customer segment
allows businesses to anticipate customers’
needs more accurately, making value creation a
smoother process.

Integrated low-
cost/differentiation
Some businesses find success by combining a
low-cost strategy and differentiation.

A great example is the rise of "premium fast

food" restaurants, which offer the low prices
associated with traditional fast-food chains
while providing a differentiated range of
offerings. The combination provides just
enough uniqueness to cater to a particular
market. The success of such restaurants is a
testament to the effectiveness of this type of
strategy.

📚 If you're struggling to determine the best

business strategy for your business unit,
consider exploring the Value Disciplines
framework. It has guided many successful
businesses in the right direction.

Free Template

Download our free

Geschäftsstrategie
Plan Template
 Download this template

How To Write A
Business Level
Strategic Plan
Once you've decided on the type of business
strategy you want to pursue, you need to write
a strategic plan that outlines the actions your
business unit will take to achieve its vision.

If you need guidance on how to write a

strategic plan, we've covered it in detail before.
But it can’t hurt to quickly go over the process
anyway.

1. Analyze where you

currently stand
First, you need to gather and analyze key
information about your business's present state
and performance.

This can include reviewing KPIs, doing a SWOT

analysis, evaluating the competitive
landscape, reviewing financial performance,
gathering customer feedback, considering
internal capabilities, and analyzing risks and
challenges.
Such an analysis will help you develop a fact-
based understanding of your current position
that should your strategic direction and
choices.

2. Prioritize focus areas

Identify the key areas you'll be focusing on
when working towards your vision. Your
analysis from the previous step should help.
These focus areas should be more specific than
your vision statement, but not as detailed as
having particular metrics or deadlines attached
to them.

3. Define strategic
objectives
Strategic objectives represent what you want
to accomplish. These objectives are relatively
high-level but should still have a deadline
associated with them. Make sure your strategic
objectives align with one or more of your focus
areas. Typically, you'll have 3-6 objectives for
each focus area.

4. Assign KPIs
KPIs are values that help you measure
progress toward your strategic objectives. It's
important to develop KPIs that directly
contribute to achieving specific goals or
objectives. Otherwise, you run the risk of
diverting attention, time, and resources away
from crucial KPIs.
5. Create projects
Projects describe what you will do to
accomplish your objectives. Projects need to be
specific, including clear deadlines and a
description of the actions you'll take.

Each project should align with at least one

strategic objective and outline how it will
contribute to achieving that objective. Typically,
you'll have multiple projects for each strategic
objective.

💡Pro tip: When writing your strategic plan,

it’s helpful to keep in mind that business level
strategy decisions are typically based on
analyzing two main factors: customers and
core competencies.

👉How Cascade can help:

Cascade’s Planner makes it easier to create,

share and execute strategic plans. To make
things even simpler, you can use our template
which will help break down your high-level
plan into executable outcomes.
Business Strategy Template planner view in Cascade.

👉🏻 Get your free business strategy template

here.

More related business level strategy

templates:

Business Growth Strategy Template

Business Development Strategy Template

Business Continuity Plan Template

Business Expansion Plan Template

Business Action Plan Template

💡Don't see what you're looking for? Explore

our strategy template library with over 1,000
templates catered to different business units
and industries.

The Key Focus Areas

For Business Level
Strategies
Now that we understand how to structure a
business strategy, let's dive into the actual
content that should be included.

While the specifics will vary depending on the

organization, there are generally two key
elements that should be addressed in your
business level strategy.
Core Competencies
In business level strategy, the concept of core
competencies is key.

Core competencies are the unique elements of

a business that set it apart in the market and
provide value to customers.

Identifying and leveraging these competencies

to gain a competitive advantage is a major
aspect of business level strategy.

If you're struggling to identify your business's

core competencies or competitive advantages,
a VRIO analysis is a great starting point that
should help you out.

👉 Grab your free VRIO strategy template

here.

Customers
Understanding your customers is another
essential aspect of business level strategy.

You need to know who your current and

potential customers are and how they interact
with your business.

To develop this understanding, consider the

following who, what, and how questions:

Who are the customers?

Look at demographic descriptors and

consumption patterns to paint a clear picture of
your customer base.

Unlike corporate strategists, business level

strategists often have a precise understanding
of their customers. That allows them to tailor
strategic decisions in a way that just isn’t
feasible at a corporate level.

What are the products that customers need?

Understanding the wants and needs of your

customers is vital for developing and
maintaining a competitive advantage.

Successful businesses are the ones that fulfill

customer needs and create value. That’s why
you want to understand your target customers
to the point where you can forecast changes in
customer needs as well as anticipate
fluctuations in demand.

How can the business satisfy customer needs?

Finally, organizations need to leverage core

competencies, resources, and their
understanding of their target audience to
ensure customer satisfaction. Businesses need
to create a solution to a pressing problem and
create a product or service that’s perceived as
valuable in the eyes of the target market
segment.

Putting it all together

Now that you have a solid understanding of
your core competencies and the customers you
serve, you have a powerful foundation for
developing strategies that foster competitive
advantage and drive value. This is the ultimate
goal of the business level strategy.

How To Cascade
Business Level
Strategy To
Functional Level
Strategy
Once you've crafted your business strategy, it's
important to ensure that it’s effectively
communicated and translated into actionable
plans at the functional level.

This process, known as cascading, enables

each department to align its efforts with the
overall strategic objectives of the organization.
Here’s how you do it:

1. Share the business level strategy with

department heads.

2. Identify relevant objectives and projects for

each department.

3. Define focus areas based on the identified

objectives and projects.

4. Develop department-specific strategies and

tactics. Address specific actions each
department will take.
5. Align efforts and coordinate among
departments.

By following these steps, you can effectively

cascade your business strategy to all key
departments, coordinate efforts and achieve
strategic objectives.

👉How Cascade can help:

With Cascade's Alignment & Relationships

feature, you can see every plan in your
workspace and how they connect to each other
from a bird's eye view. Using a simple tree
structure, you'll be able to see how every plan
is aligned with each other and progressing
across your organization.

Alignment Map example in Cascade

Final Thoughts
Business level strategy is where abstract
strategic directions from the corporate level
translate into tangible initiatives that generate
real-world value.

Together with a strategy execution platform

like Cascade, it can help you achieve great
strategic feats. The combination of the right
approach and the right software empowers
you to:

Create simple yet impactful strategies

Our most successful customers have used

Cascade to zoom in on certain parts of their
business, identify their core competencies, and
prepare suitable objectives. Instead of
overcomplicating strategies, they kept it simple
and actionable.

Reverse engineer your strategy

Cascade enables you to see where your

initiatives stand today and provides data as
well as the wider context. These strategic
insights will help you design metric-based
strategies rooted in reality, rather than relying
on disconnected numbers, outdated tactics,
and irrelevant industry benchmarks.

Adapt quickly and effectively

You can monitor the impact of a particular

approach on a smaller, business level scale,
recognize what’s working, and either change
course or double down.

These benefits and everything mentioned in

the article make a business level strategy
combined with a strategy execution platform
immensely valuable. Good and iterative
strategic planning at the business level will
radically impact outcomes for any organization
—from the very small right up to the very large
one.

Free Template

Download our free

Geschäftsstrategie
Plan Template

Download this template

Business Level
Strategy FAQs

Should a business level

strategy change over
time? If so, why?
Yes, business level strategies should change
over time to adapt to evolving markets,
competition, customer needs, and internal
capabilities.

The ability to adapt also reflects that the

business is monitoring its current performance,
the impact of its strategic decisions, and is
proactively thinking about improvements. The
ability to adapt is crucial for sustainable
success.

Share this post

 Strategy Planning

Tom Wright
CEO, Cascade

Popular articles

How To The Best How To Set And How To

Implement The Management Execute Implement
Balanced Reporting Strategic Effective
Scorecard Software For Priorities Strategic
Framework Strategy Planning In
(With Officers (2024 Healthcare
Examples) Guide)
Your toolkit for strategy
success
Book a demo Get started — Free

#1 Rated Strategy Execution Platform

Less chaos. Better Decisions. Faster Results.

Product Resources Customer Get Involved

Stories
Execution Support Book a
Software Financial Product Demo
Cascade Services
Plan Courses About
Healthcare Cascade
Manage Strategy
eBooks Education Contact Us
Track
 Product tour Strategy Retail & Careers
Toolkits Hospitality
Strategy Partners
Dashboards Strategy Government
Courses Press & Media
Pricing All Case
Strategy Blog Studies

Strategy Job Webinars

Descriptions

KPI Cheat
Sheets

© 2024 Cascade Terms Privacy