At Prestige Auditors, we are always ready to answer questions that both professionals and novices have about business.
Recently, we came across a curious question: “How Do Functional Tactics Compare to Business Strategies?”
So, we decided to answer!
Let’s start with what business strategies mean in business.
Generally, businesses operate on what we’d like to call the Pyramid of Business Strategy. There are three levels in this pyramid. These are, in hierarchical order: corporate level, business level, and functional level.
The corporate level includes a final comprehensive plan for the business, which is set in motion by the chief managers of the business. All the key internal and external details are discussed and decided at this level.
But what we are currently interested in are the business and functional levels. Specifically, business level strategies and functional level strategies.
At their core, business level strategies are exactly what their name suggests: strategies.
Since they are situated in the middle part of our pyramid, it’s safe to assume that these strategies are developed by individuals who are in charge of managing a business.
Once you set up a business, you can’t sit around and wait for something magical to happen. You have an objective. An endgame which you are shooting for. And you need to have strategies for approaching different goals your business might have.
The efforts made to reach ultimate goals as well as any decision made in a business can be considered as business strategies. They are there to help achieve end goals as a business (such as conquering a marketplace, reaching a specific audience, etc).
Business strategies are important because they give direction to businesses. Without them, businesses would stay adrift in an ocean of other businesses and have no idea how to swim ashore.
Now let’s say you know which direction the shore is, which means you know your objective. But, how are you going to get there?
This is where we enter the last section of our pyramid, and this is where functional strategies or tactics come in.
If we were to consider business strategy as a theory, the functional tactics would be the practical tools which, combined with the theoretical, will direct a business toward its business goals and objectives. As evident by the name, these strategies have to be functional and are designed to be practical and useful. They are designed and implemented by supervisors, and include aspects of the business such as marketing, advertisement campaigns, research, financial planning, and others.
All of these layers combined create the overall pyramid of business strategy which is crucial for any business. If one level fails, the structure will become stable.
Talking about a stable business entity, why not let us at Prestige Auditors form yours? We are professionals at not only forming business, but also a myriad of other business-related services, such as Kansas business entity search, if you’re located in Kansas, same with other states. Owing to our professionalism, we also work with other experts, such as our friends and partners at Got Suspended Clients, who are equally professional in dealing with Amazon-related suspensions and issues! Don’t hesitate to book a call with us today!
You may be interested in: “Disaster Recovery Strategy: 7 Key Steps to Creating a Plan for Your Business”