Comment on the following: The nature of business strategy is executive and governing, whereas the corporate strategy is deterministic and legislative.

Answer 6A(iii) Business Strategy is the strategy framed by the business managers to strengthen the overall performance of the enterprise, whereas corporate Strategy is stated in the mission statement, which explains the business type and ultimate goal of the firm. The fundamental difference between corporate and business strategy are explained below: Business Strategy is framed by middle-level management which comprises of division, unit or departmental managers. Conversely, corporate strategy is formulated by top level managers, i.e. Board of Directors, CEO, and Managing Director. The nature of business strategy is executive and governing, whereas the corporate strategy is deterministic and legislative. The business strategy is a short term strategy, while the corporate strategy is a long term one. The business strategies aim at selecting the business plan to fulfill the objectives of the organization. As against, the corporate strategy focuses on the business selection in which the company wants to compete in the marketplace. Business strategy is concerned with a particular unit or division. Unlike corporate strategy which focuses on the entire organization, comprising of various business units or divisions. The business strategy focuses on competing successfully in the market place with other firms. On the contrary, corporate strategy stresses on increasing profitability and business growth. Business Strategy has an introverted approach, i.e. it is concerned with the internal working of the organization. In contrast, Corporate Strategy uses extrovert approach, that links the business with its external environment. The business strategy is concerned with the growth in revenue, profitability and market share, hence it is more from the perspective of executive planning and governance. Corporate strategy takes into consideration the implementation of various processes required for the effective execution of the business strategy, hence it is more deterministic and legislative in nature.