Business strategy is an overall business management plan made by an enterprise to achieve its business goals and seek long-term development. It is related to the long-term interests of the enterprise, as well as the success and failure of the enterprise. Formulating business strategy is the responsibility of the top management of the company. Its contents include: business strategic thinking, which is the guiding ideology for enterprises to make business strategic decisions; business strategic principles, which are the action programs of business strategies; business strategic goals, which are the results to be achieved by business operations, and the business goals announced by Western companies Generally include: shareholder objectives (i.e., stock holders’ expectations for corporate operating results), social responsibility objectives (i.e., business operations require responsibility for social laws and ethics), and labor relations objectives (i.e., adjusting labor relations by increasing wages and welfare levels) ; Business strategy measures, which are the specific guarantee for the realization of business strategy, including product development, market selection, resource allocation, price determination, product promotion, financial management, etc. The types of business strategies are divided according to the business situation of the enterprise: contraction strategy, stability strategy, and development strategy. According to the nature of the strategy: product strategy, market strategy, technology strategy, etc. Most Western companies focus on product and market strategies, and specifically implement market penetration strategies, market development strategies, product development strategies, etc.

Business strategy is an overall plan for enterprises to pursue long-term survival and continuous development in the face of drastic changes and severe challenges. Modern management education such as MBA, CEO12 and EMBA believe that business strategy should be divided into broad and narrow senses. Business strategy in the broad sense refers to the management of the entire enterprise using strategic management tools, carried out under the guidance of business strategy, and implementing the strategy. Intention, to achieve strategic goals; business strategy in a narrow sense refers to the management of the process of formulation, implementation and control of enterprise business strategy.

More specifically, business strategy is to determine the relationship between the enterprise and the environment and stipulate the business scope of the enterprise on the basis of making full use of various opportunities existing in the environment and creating new opportunities under the conditions that are consistent with and ensure the realization of the enterprise’s mission. , growth direction and competitive strategies, rationally adjust the corporate structure and allocate all resources of the enterprise. Judging from its formulation requirements, business strategy is to use opportunities and threats to evaluate the future environment, use strengths and weaknesses to evaluate the current situation of the enterprise, and then select and determine the overall and long-term goals of the enterprise, and formulate and decide action plans to achieve the goals.