strategic directiondeciding, as part of a firm's overall BUSINESS STRATEGY, which business activities the firm should operate in, and where. For example, the firm may decide to specialize in one particular activity (see HORIZONTAL EXPANSION) or it may decide to deepen its involvement in an industry by undertaking VERTICAL INTEGRATION; or it may wish to broaden the scope of its activities by DIVERSIFICATION into new product areas. The geographical markets in which the firm operates also require consideration. Some firms, for example, may choose to operate on a purely local/regional basis, some may establish themselves as national suppliers or as MULTINATIONAL ENTERPRISES supplying markets on a global basis. See PRODUCT MARKET MATRIX, DIRECTIONAL MATRIX.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson