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Corporate Strategy vs Sales Strategy

Someone recently asked me if there was a difference between business strategy and sales strategy. There is a distinct difference between the two, and I was fortunate to have been trained on the differences early in my career. To a small business owner, I appreciate how those lines might seem overlapping.

Strategy is a vital component of business success and refers to the plans and actions organizations take to achieve their goals and objectives. There are different types of strategies, including corporate strategy, business strategy, and functional strategy. Each type of strategy plays a unique role in shaping an organization's future, and understanding the differences between them is critical to achieving success.

Corporate strategy is critical because it provides a framework for decision-making and ensures resources are allocated to the areas that will generate the most significant returns for shareholders. Providing overall direction of an organization, it starts with a Vision statement and involves determining which industries and markets an organization will operate in. Typical considerations include decisions regarding mergers and acquisitions, divestitures, and alliances. The primary objective of corporate strategy is to maximize shareholder value by creating synergy among different business units within the organization.

Business strategy is vital because it enables organizations to differentiate themselves from their competitors and create a sustainable competitive advantage. Focused on the specific activities and processes that organizations use to compete within their chosen industry or market, this strategy will focus on market differentiation. Business strategy typically involves decisions regarding pricing, marketing, and product development. The primary objective of business strategy is to create a sustainable competitive advantage that allows the organization to achieve superior financial performance and supports corporate strategy.

Functional strategy aligns the plans and actions taken by specific functional areas within an organization, such as sales, marketing, finance, operations, or human resources to business and corporate objectives.

Sales strategy outlines the steps and tactics that the sales team will take to reach and convert potential customers, and it will drive revenue growth and profitability.

Cascade provides great software tool to document and track the deployment of your strategic initiatives throughout the organization.


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