Understanding Business Strategy
Discuss about the Information Strategies Of Firms.
In the modern era, effective management of business strategy is essential for growth and success of the organization in the long run. However, it can be critically argued that management of business strategy is not an easy task for companies as they are required to deal with different types of issues during the same (Johansson 2014). In simpler terms, the business strategy can be defined as the process of developing and implementing action plans to accomplish long and short-term goals. Nowadays, the competition among businesses in almost every sector has become so intense that it is not easy for organizations to sustain in the marketplace (Galliers & Leidner 2014).
Firms are now required to carry out changes in their business strategy at regular intervals with an objective to remain competitive in the marketplace. Apart from this, effective strategies help companies to lower down their operational costs and gain an advantage over other market players by offering services and products at low prices (El-Telbany & Elragal 2014). It can also be expressed that business and information strategies also play a vital role in processes such as product development, integration of stakeholders, process improvements and communications. The use of different business and information strategies results in carrying out the smooth flow of all operations and activities within an enterprise.
The present research report outlines different types of business and information strategies present in front of firms. In addition to this, the main advantages of implementing these strategies are also mentioned in the current research. The overall process of developing a result oriented business study has been reflected in this study.
The objectives of present study are mentioned below as:
- The business strategy will aim at enhancing the existing market share and provide competitive advantage to the enterprise.
- To increase the overall strength of financial resources will be the another objective of this research
- The business strategy will also emphasize on the enhancing the overall productivity of company and will seek for improving profit margins by offering quality products and services to customers
- The objective of business strategy will be to encourage innovation within the enterprise
Business and information strategies can provide different types of benefits to companies in the long and short run. Furthermore, the intense competition within industries has resulted in creating several obstacles in the overall growth and success of businesses. At the same time, it is not easy for organizations to capture higher market share and attain the figure of desired profits. However, it can be critically argued that efficient and appropriate use of business and information system can help companies to gain the competitive advantage over other market players (Johnson et al. 2013). The rationale behind this is that the proper use of business strategy helps in carrying out proper communication with all stakeholders with regards to aim, objective and action plan of an enterprise. Apart from this, the use of business and information strategy also support in carrying out the best possible and optimum utilization of all available resources.
Role of Business and Information Strategy in Enhancing Performance and Productivity
The present study will help organizations to identify various types of business strategies which they can implement to become competitive in the marketplace. It will also assist in getting insight into the role of business strategy in enhancing the overall productivity and performance of a business enterprise. Furthermore, the scope of business strategy is not limited to improving the financial performance of a company, and the strategy can also help businesses to deliver satisfactory products and services to large customer base. On the other hand, it can be expressed that the use of business strategy can also contribute to enhancing the entire process of decision-making.
Business strategy is all about the plans that business prepares in order to accomplish the desired objectives. Further, it is a well-known fact that the market where organizations operate is full of challenges and in turn, large hurdles are faced at the time of conducting operations. Due to this reason effective business strategy is needed for the smooth functioning (El-Telbany & Elragal 2014). The development of unique business strategy is the ultimate objective of every business and due to this reason IT systems are employed through which it is ensured that company is working on the right platform.
A large number of factors are present that are considered by businesses at the time of framing strategies, and these factors are customer acclimatization, adapting various unique company strategies, in-house marketing, enclosure to limitations, staff member consent, and definitive leadership of the employees with proper experience in marketing (Laudon & Laudon 2016) In short, no business can survive in the market if its strategy is not up to the mark. Strategies help in resolving various challenges that are present in the external environment. Both business and information strategy has a direct link with each other as it is a well-known fact that information is required at stages such as strategic, operational and tactical. Therefore, managing information in a proper manner is the ultimate objective of every business so that long-term performance can be enhanced easily.
Majority of the managers present in enterprises focuses on the development of effective strategy, and this is done by analyzing the internal along with the external environment of the business where operations are being carried out. The external environment of the business takes into consideration customers, competitors, suppliers, etc. who directly influences the overall operations of the business (Österle 2013). They are the one on which the business performance depends and due to this reason it is necessary to frame strategies considering this factor. In short, the ultimate objective behind developing any strategy is the enhancement of customer base of the enterprise. The key goals associated with any organization is enhancing profitability level, sales volume, customer base, enhancing brand loyalty, etc. and they depend on the strategy that businesses frame (Pearlson, Saunders & Galletta 2016).
Benefits of Effective Business Strategy
Apart from framing a strategy, organizations are required to take initiatives in its implementation where series of steps needs to be followed so that strategy can be readily accepted within the workplace. The competitive strategy allows business to maximize its overall value in the market, and it is possible to distinguish its products and services from those of competitors in the market. With regards to business, it is must for organizations to analyze the competition level in the market so that unique strategies can be developed for dealing with the issue of high competition in the market (Reynolds & Yetton 2015). Business strategy is only successful if it has been generated by analyzing the environment where the company operates, and this sometimes becomes the main reason behind the success of the business in the market.
A large number of benefits are associated with having a good business strategy and the major benefit is that it provides clarity, focus, and direction. It provides clear guidance to the business on which operations needs to be carried out. Further, the mission and vision can be accomplished quickly. Apart from this, the better understanding of the present business operation is another advantage of business strategy where companies can quickly know the actual stage where business is now and what actions are required to be taken for performance enhancement in the market. Further planning of the business is possible with the help of strategy, and it sets the direction for near future. This indicates the key benefits associated with the business strategy that provides the competitive edge to the business in every possible manner (Smallwood 2014). On the other hand, it has been identified that key reason behind the failure of any business in the market is its ineffective business strategy where companies are not able to find the clear direction where they have to operate, and it leads to unfavorable results.
Information strategy is regarded as the high-level strategic plan with the motive to manage information of the business along with the knowledge resource. Further, it is a well-known fact that managing information in every organization is most crucial as its optimum utilization leads to favorable results for the business and enhances the market performance of the entity. Information strategy provides a base in understanding about the strategies objectives of the business (Veit et al. 2014). Every business enterprise relies on the information that is regarded to be accurate, relevant and timely. Further, information need differs from one company to another. For instance production department of the company needs information about raw material required production system etc. Therefore, this information needs to be managed properly for the overall growth of the company.
Information Strategy: Managing Information and Knowledge Resources
Further, organization information resources can be managed with the strategy that relies on strategic objectives and provides an idea of the information needs along with the way in which employees should use that information. Series of steps are employed at the time of developing any information strategy where it starts when managers need to understand the strategic objectives of the business, the establishment of activities and information resources is the another stage, current process along with the information resources of the business are examined by conducting information audit.
Moreover, information policy development contributes a lot to the development of an organization as it provides a base for managing information in an effective manner and brings favorable results in every possible manner. A large number of businesses operating in the market depend on up to date and trustworthy information (Wu, Straub & Liang 2015). Due to this reason, companies have started to adopt IT systems through which they can manage valuable information, and it is utilized properly. With the advanced systems, it becomes easy to maintain information regarding storing and using it for different purposes.
There is a need for every organization to build an information strategy that can assist them in gaining the competitive edge over its rivals. This leads to rising in efficiency level of the company in every possible manner and leads to favorable results also. Various studies carried out have supported in knowing that a lot of businesses relies on IT system for managing their information resource and through this, they can sustain in the competitive environment for a longer period (Galliers & Leidner 2014). No doubt information is required at every level that involves strategic, tactical and operational level. Further, information needs of every department have to be satisfied effectively so that operations can be carried out smoothly and in turn, it acts as the development tool for the company.
On the other hand, for effective implementation of the business strategy effective leadership is needed where leaders have to ensure that the present internal operations of the company are effective enough in adopting the new strategy. No doubt, implementation of strategy directly influences the entire organization and due to this reason stable leadership is must through which it is ensured that company is operating efficiently (Thamir & Poulis 2015). Leaders set some benchmarks by which it becomes quite easy to implement the information strategy properly. Therefore, with the help of it can be stated information strategy is the most integral part of the study that manages business performance in every possible manner and aids company in obtaining favorable results.
Steps for Developing an Effective Information Strategy
The present literature review undertaken holds some literature where the entire analysis is based on business and information strategies, and it does not focus on the other areas through which companies can enhance overall performance in the market. Further, it does not reflect the possible ways through which information within the workplace can be managed, stored and utilized for enhancing the overall efficiency of the enterprise. Only the relevance of information strategy has been highlighted in the literature review but no valid ways through which storage is possible so that each department can utilize information to enhance overall performance in the market
To define a business strategy which can help a business to gain competitive advantage in the industry?
- Explain how a business strategy can enhance the existing market share and provide competitive advantage to the enterprise?
- How the overall strength of financial resources can be increased through business and information strategy?
- How a business strategy can contribute in enhancing the performance and productivity of an organization?
Research methodology can be defined as the action plan developed by a researcher with an objective to carry out the study in the best possible manner. The section of research methodology consists of various techniques and tools which are adopted by the researcher to gather appropriate information and carry out analysis of the same (Neuman & Robson 2014). On the other side of this, research design can be termed as an overall strategy which is employed by a researcher with an objective to carry out the logical integration of various components linked with the study.
Exploratory design of research has been used in the present study to identify a business strategy which can help a business to gain a competitive advantage in the industry. The reason behind using exploratory research design is that it has provided the researcher with an opportunity to get insight into the topic selected for investigation. In addition to this, the use of exploratory research design has also supported in developing a valid and accurate conclusion of the entire research.
To collect adequate, reliable and valid information, primary and secondary sources of data collection have been used in the present research. Here, secondary data is collected from different articles, journals, and books published on the topic which is the business strategy. On the other hand, primary data has been collected through managers of the multinational retail organization. The researcher has employed purposive sampling technique, and the sample size is twenty managers.
The process of conducting qualitative research consists of six major stages, and the researcher is required to be very careful at every stage. The process begins with developing the fundamental questions of the study and this stage followed by the selection of different secondary sources from where information can be collected. In the third stage, the research gathers information from the selected sources (Flick 2015). The fourth step includes analysis and interpretation of the collected data, and in the fifth stage, the conceptual and theoretical framework of research is developed. In the sixth step of the qualitative research process, findings and conclusion of the study are written by the researcher.
Importance and Benefits of Information Strategy
Here, the researcher is required to ensure that the data collected from secondary sources are reliable and validity or not. Selection of latest and authentic sources to obtain required information is the fundamental approach to reliability and validity in qualitative researches. Regarding sampling, it can be asserted that non-probabilistic technique of sampling is used in qualitative research. Furthermore, purposive, snowball, quota, convenience are different types of sampling method which are used in qualitative research. The sample size in such kind of investigations varies from 20 to 50 respondents.
The process of quantitative analysis begins with the development of suitable theory and then hypothesis which is linked with the research. In the third stage of quantitative studies, appropriate design of research is selected, and then different measures of concepts are devised in the fourth stage (Mackey & Gass 2015). In the process of carrying out quantitative research, different types of respondents and sites are selected by the researcher in the fifth stage. Moreover, the six-stage deals with the collection of data and the stage are followed by analysis and interpretation of the same. In the last stage of quantitative research, the valid conclusion is drawn by the entire conducted report.
Questionnaire and tests can be termed as the most common and widely used instruments in quantitative studies. Here, a probabilistic method of sampling is used, and the researcher prefers small sample size with an objective to avoid errors during the study. The process of data collection is carried out with the help of tools such as questionnaire and interview (Taylor, Bogdan & DeVault 2015). In quantitative research interviews are also considered as survey interviews as the format of question and answer is in the form of the survey. Apart from, the questionnaire which can be termed as the set of written questions is also used in quantitative research. The reliability and validity of data can be ensured by selection of most appropriate sample and size.
Researcher limitations can be termed as those factors of study which beyond the control of researcher and influence the overall study to a great extent. For the present researcher, time and cost can be considered as the major research. To conduct the entire study on business and information strategy, the limited amount of time and money was available to the researcher. In addition to this, limited literature on business strategy and competitive advantage can be termed as another limitation of this study.
Writing Research Proposal
Reading various literature
Finalizing the aims and objectives
Draft literature review
Collect secondary data
Analyze secondary data
Develop research approach
Draft research methodology
Arrange the interview
Conduct the interview
Accumulate the data
Complete remaining chapters
Submit it to tutor and await for feedback
From the above study, it can be concluded that business and information strategy plays a vital role in success and growth of companies. Furthermore, appropriate use of business strategy can support the enhancement of the existing market share and provide a competitive advantage to the enterprise.
El-Telbany, O & Elragal, A 2014, ' Business-information systems strategies: A focus on misalignment.', Procedia Technology, vol 16, pp. 250-262.
Flick, U 2015, Introducing research methodology: A beginner's guide to doing a research project, Sage, United Kingdom.
Galliers, RD & Leidner, D 2014, Strategic information management: challenges and strategies in managing information systems, Routledge, Abingdon.
Johansson, B,SFPA 2014, 'Alignment of business and information strategies and its impact on business performance', Journal of Business Economics and Management, vol 15, no. 5, pp. 886-898.
Johnson, G, Whittington, R, Scholes, K, Angwin, D & Regnér, P 2013, , in Exploring strategy text & cases , Pearson, New York City.
Laudon, KC & Laudon, J 2016, Management information system, Pearson Education India, Delhi.
Mackey, A & Gass, S 2015, Second language research: Methodology and design., Routledge, Abingdon.
Neuman, WL & Robson, K 2014, , in Basics of social research, Pearson , London.
Österle, H 2013, Business in the information age: heading for new processes, Springer Science & Business Media., Berlin.
Pearlson, KE, Saunders, CS & Galletta, D 2016, Managing and Using Information Systems, Binder Ready Version: A Strategic Approach, John Wiley & Sons, New Jersey.
Reynolds, P & Yetton, P 2015, 'Aligning business and IT strategies in multi-business organizations', Journal of Information Technology, vol 30, no. 2, pp. 101-118.
Smallwood, R 2014, Information governance: Concepts, strategies, and best practices, John Wiley & Sons, New Jersey.
Taylor, S, Bogdan, R & DeVault, M 2015, Introduction to qualitative research methods: A guidebook and resource. , John Wiley & Sons., New Jersey.
Thamir, A & Poulis, E 2015, ' Business intelligence capabilities and implementation strategies', International Journal of Global Business, vol 8, no. 1, p. 34.
Veit, D,CE,BA, Buxmann, P, Hess, T, Kundisch, D, Leimeister, JM, Loos, P & Spann, M 2014, 'Business models', Business & Information Systems Engineering, vol 6, no. 1, pp. 45-53.
Wu, SP, Straub, D & Liang, T 2015, 'How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and it managers.', Mis Quarterly, vol 39, no. 2, pp. 497-518.
Zikmund, W, Babin, B, Carr, JC & Griffin, M 2013, Business research methods, Cengage Learning, Massachusetts.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2019). Business And Information Strategies: Advantages And Implementation. Retrieved from https://myassignmenthelp.com/free-samples/information-strategies-of-firms.
"Business And Information Strategies: Advantages And Implementation." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/information-strategies-of-firms.
My Assignment Help (2019) Business And Information Strategies: Advantages And Implementation [Online]. Available from: https://myassignmenthelp.com/free-samples/information-strategies-of-firms
[Accessed 28 February 2024].
My Assignment Help. 'Business And Information Strategies: Advantages And Implementation' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/information-strategies-of-firms> accessed 28 February 2024.
My Assignment Help. Business And Information Strategies: Advantages And Implementation [Internet]. My Assignment Help. 2019 [cited 28 February 2024]. Available from: https://myassignmenthelp.com/free-samples/information-strategies-of-firms.