It is broadly agreed that there is a need to define the basic nature of a particular organization. This is sometimes labelled the ‘mission statement’ or business concept. The notion of the business concept has a considerable impact on management studies and corporate practice. The business concept combines and weaves together a number of factors within and outside the organization – the market segment, the product system, and the organizational structure, competence and management style.

The business concept represents a harmony between the market, the product and the organization. Compared to many mission statements, business concepts often are somewhat more informative and elaborate. In some cases, however, the terms are used synonymously.

A cultural view of strategy emphasizes reality as a social construction. Ideas about the market and the environment in general determine organizational operations. This requires matching employees understanding of the environment with necessary organizational actions. Strategy might be defined as creating frames of reference that allow the organization and its environment to be understand by its stakeholders, who are then motivated to act in ways that are expected to produce favorable results.

Strategy should be regarded as a more or less synthesized abstraction of the aspects of the organization’s identity which are to be developed. Organizational and strategic change is primarily a question of transforming the underlying organizational symbolism holding the organization together and providing points of reference for social action.