Business model connecting strategy with tactics

Integration between strategy and tactics must be done. For that a suitable vehicle must be found. Business model is the best vehicle ever. Here is how business model does this job:

What is business strategy?

In essence, strategy deals with the unique proposition a business offers in the form of either product or service or both. Such a proposition must create and sustain value for the business. More than that, this proposition must give a distinct and discernible advantage for the business as against its competitors. In order to sustain this advantage firms must frame suitable stratagem in using right ways to employ right assets to achieve right goals. For this firm needs a road map.

What a business model does?

Basically it is the road map for a firm to translate business strategy into practical measures. In fact business model helps the firm to put its strategic perspectives into practical terms. So business model functions as the vehicle to deliver what the firm intends to do.  Osterwalder writes: “A business model describes the rationale of how an organization creates, delivers, and captures value”.

Why need business tactics?

These are steps a firm takes in order to implement every bit of business model that gives nuts and bolts of how to act and/or re-act to any situation arising while implementing action plan as stated in the business model in order to achieve goals of a firm. In addition to planned tactics that are already incorporated within a business model line managers are allowed to amend tactics, as and when necessary, to suit to the ground situation. But all these changes must be in line with the overall thrust of the strategy.

Cheers!

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist