Business Strategy of an Organisation

Question: Discuss about Business strategy is very important for an Organization as it helps to attain Specific Goals and Objectives. It is one kind of Management Plan which helps to Increase the Performance of an Organization and without this it is really tough to compete in the Market with other Competitors. Answer: Defining Strategy It is the means by which objectives are deliberately followed obtained over the time. The word strategy has been originated from the Greek word stratgos, that has been derived from two words that are "stratos" (denoting army) ago (denoting leading/moving/guiding in Greek). We can also describe strategy as the determination of the basic long term objectives goals of an organization the implementing the course of action the allocation of resources which are required for fulfilling these goals (Mintzberg Waters, 2005). Various Levels of Business Strategy In an organization, strategies exists are several levels, ranging from the overall business (or group of business) through to personnel working in it. Corporate Strategies: This strategy is concerned with the overall scope purpose of the business to meet the expectations of the shareholders. Corporate strategy is an essential level because it is profoundly influenced by the business investors acts to monitor strategic decision making throughout the course of business. Corporate strategies are also known as the mission statement of the organization. Business Level Strategies: These strategies are concerned more with how a business competes in a particular market successfully. It is also concerned with strategic decisions about meeting the needs requirements of the consumers, product choice, attaining advantages over the competitors, creating new opportunities or exploring the existing opportunities. Operational Strategies: These strategies are concerned with how each portion of the business is systemized in order to deliver the business level corporate strategic directions. These strategies therefore focus on challenges of people, processes resources. (Ansoff , 2007). The success of any of the good organization is grounded on the measures which are placed out by the various stakeholders in the organization. In an organization, business strategy is vital for achieving the set objectives. In a marketable setting, the key aims usually revolve around gaining huge profits, expanding growing most prominently, diversifying. These goals must be attained for having a successful business in any prosperous industry (Grant, 2008). In order to compete healthily in the market, many business strategies can be utilized by existing new ventures. Most organization that have captured the market generally have a history of excellent functional strategies which have been set adhered strictly. Hence, it is crucial that once the strategies have been drawn enacted, the measures are entered into the system and are implemented (Burns Stalker, 2008). There are number of sources from where the strategies can be gained put into use. The major route is through educational systems. There are management courses available for the students from where they can grasp the knowledge on various commercial factors which are necessary for success. They are all open to various career aspects skills like branding, team building, marketing, etc. which impact the day to day operations of any organization. Moreover, there are other platforms such as internet sources enterprising conferences talks, by which a lot of information exchanges can take place, highlighting various factors encountered in the business world. There are numerous issues which are discussed on these platforms such as entrepreneurship communication skills, and also management accountability skills which are very important to successfully run a business. There are various governing authorities across the world which ensures that these strategies are ratified achieved via numerous support options, offering moral financial support. These governing authorities also organize numerous workshops seminars for the business entrepreneurs to shape their skills, knowledge expertise, all these elements are important to successfully run any business. These business strategies have done a credible job in safeguarding the success of many business organizations (Quigley, 2004). Process of Business Strategic Management Define the current business mission: Every organization has to select the basis on which it will compete in the marketplace, i.e. which are the products that will be offered by the business, where theyll be selling their products or services, and how these products are services offered will be different from its competitors. This step includes setting up the organization mission statement, strategies, objectives tactics. Performing external internal audit: Generally, the strategic planning is executed by doing the external internal environmental analysis. SWOT analysis is used by the organizations in order to facilitate the external internal audit and to identify the strengths, weaknesses, threats opportunities. Formulating vision and mission statements: On the basis of the SWOT analysis, companies decide on what their new business model should and what would be their new mission vision statement. Translating mission into strategic goals: The mission of the organization is divided into strategic goals, i.e. various goals are set that will help in attaining the mission and vision of the organization. Articulating strategies to attain strategic goals: Strategies are the course of action that describes the way in which an organization will run its business. The best strategies are concise, so that they can easily be conveyed by the organizational leaders to the employees. Implementation of strategies: Strategies are translated into results actions. Strategy implementation involves application of all the management functions such as planning, organizing, staffing, directing or leading and controlling. Performance Evaluation: Managing and evaluating strategies is an ongoing process. Keeping the strategic control helps an organization to maintain its strategies up to date (Wells, 2002). SWOT Analysis This tool is used to analyse the internal weaknesses strengths of the organization, also the external threats opportunities to the business. The key motive of doing SWOT analysis is to discover the strategies which match, fit or align with capabilities resources of the organization to the demand of the organization in which the business competes. The motive of the strategic alternatives produced by SWOT analysis should be developed on the strengths of the company to exploit the opportunities lessen the threats to precise weaknesses of the business (Freeman, 2004). PEST Analysis The tool is used to scan the external macro environment where the business functions. These factors can be determined in terms of the below stated aspects: Political Economic Social Technological PEST framework is applied to analyze the macro environmental factors. A PEST analysis fits into complete environmental scan (Harrison, 2002). Political factors consist of legal issues government regulations. And both these factors involve informal formal rules under which the business operated. Few of the political factors comprises environmental regulations laws, political stability, tax policies, level of corruption trade restrictions trade tariffs. Economic factors impacts the potential customers purchasing power the capital cost of the organization. Some of the economic factors include interest rates, economic development, exchange tariffs inflation rates. Social Factors comprises of demographic cultural aspects of the external macro environment. The social factors impact the needs size of the potential market. Some of the examples of these social factors consist of growth rate of population, health consciousness, career attitude, age distribution emphases on safety technological factors. Technological factors help the organization in lowering the entry barriers, persuading outsourcing decisions dropping minimum efficient level of productivity. Technical factors consist of factors such as automation, technological incentives, rate of technological changes and research development activities (Daft, 1998). Conclusion In todays world, the top management faces many composite strategic challenges. The strategic management consists of the analysis of internal external environments, formation implementing of its strategic plan strategic control. The steps mentioned in the process are related to each other and always done simultaneously in most of the organizations. An organizations strategy sometimes needed some modifications before it can be completely implemented because of the continuous changes in organizational environmental conditions. As the environmental and organizational changes are most of the times very hard to predict, changes made substantially in the environment are can transform companys realized strategy into a strategy which is very much different from the intended strategy(Mintzberg, 2005). References Ansoff, H I (2007) Corporate Strategy an analytic approach to business policy for growth and expansion, Boston: McGraw-Hill Burns, T. and Stalker, G.M. (2008), The Management of Innovation. London: Tavistock. Daft, R. (1998), Organizational Theory and Design. New York: West Publishing. Freeman R E (2004) Strategic Management : a Stakeholder Approach London: Pitman Grant, R.M. (2008), Contemporary Strategy Analysis. Oxford: Blackwell Publishers. Harrison R (2002) Understanding Your Organisations Character. Harvard Business Review 50 (23) 119 123) Hofer CW and Schendel D (1979) Strategy formulation: analytical concepts St Paul: West Mintzberg, H. (1997). The strategy concept I: Five Ps for strategy. 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