This refers to the strategy that is implemented within the functional areas, such as finance, logistics or marketing. This level of strategy focuses on developing and carrying out the activities that are necessary to reach the long-term objectives that have been set (Jooste et al., 2009).

Knowing more about these elements of a business and the environment in which it operates can assist decision-makers and those involved in the business’s strategy. This strategy is crucial for marketing departments as it enables them to learn more about the tactics used by rivals.

Creating a solid business strategy happens in three parts: 1) understanding where you stand strategically as an organization right now; 2) deciding where you want to be in the future; and 3) determining how you’ll get there. The steps below cover each of these areas, with steps three and four both being part of the final phase.