This study used the approach of typologies of strategies to operationalizing business strategy. The two measurement approaches of investigator inference and self-typing were employed to measure busincss strategy. Data for the study were gathered from a national survey of Taiwan pharmaceutical industry. A total of 534 companies were sent the questionnaire. The sample element of the study was the marketing manager of cach pharmaceutical business unit. This survey approach yielded 122 responses, of which 104 were usable and 93 were respondent, classified into one of the three strategic types investigated. The hypothese were tested by the use of χ^2, One-way ANOVA, Two—way ANOVA and Scheffe multiple comparisons test. Results: A. Business strategy and performance. 1. Different business strategies are not perform well on different performance dimensions. 2. For specific business strategy, there are tradeoffs among different performance dimensions. Good performance on one dimension often means sacrificing performance on another. B. Business strategy and marketing activities. Significant differences in relatively technically sophisticated product lines, quality of product, quaity od service, prices, forward vertical integration, sales promotion expenditures and salesforce expenditures are found among different business strategies. C. Business strategy, marketing activities and performance. 1. The performance of prospector business units is related positively to relatively low salesioree expenditures. 2. The performance of low cost defender business units is related positively to relatvely high formalization of marketing organization. 3. The performance of differentiated defender business units is related positively to: * relatively high formalization of marketing organization, * relatively high technically sophisticated product lines, * relatively high R&D expenditures, * relatively high forward vertical integration, and * relatively high advertising expenditures.