Give the brief Introduction of business strategy
Business strategic can be defined as the method or the plan which is about to bring about the desired future. Business strategies are known to involve various types of process like planning, setting proper goals, determining the most appropriate way or actions or tactics in order to achieve the goals and aims which are set by the company. In order to conclude the business strategic plans are known to set out the desired outcome which the company will be able to achieve and the strategies which it should be implementing to achieve the goals. However it should be said that the business strategies are no less important for a small business than it is for the large business organizations.
When did the business strategy has been started and whom?
In the field of business management strategic management is known to involve the formulation as well as the implementation of the major goals which are taken by the organization’s top management on behalf of the owners. The business strategic plans are taken care of by analyzing the internal and external environments where the company is known to operate. In the year 1998 Mintzberg had developed few of the business models and tools and grouped them in there categories. The first group is normative which consists of the schools of informal design and conception, formal planning and analytics. Whereas the second group is of six schools which are more concerned about the strategic management which is actually done The six types of schools which are involved are entrepreneurial, visionary, cognitive, learning, negotiation and adaptive business environment. The last group which is the third group consists of only one school which is the transformation school that is considerate into various other stages such as the hybrid or episodes off the organizational cycles.
What was the need of this business strategy?
The importance of business strategies is that the company will be able to target the market in which they have to deliver and sell their products. It is because the key to any successful business venture is to know the target demographics and identifying the audience. It also helps the business organizations in developing business plans with the help of the strategies the business has come up with. Therefore in order to achieve success, the business organization should develop sustainable strategies for the future. It also provides the business organization with a proper direction and developing a measurement tool which will be able to ensure the organizational progress update. With various types of innovations, it also helps the organization by focusing in the society where it is working. It reviews the customer demands and meets various types of programs.
What are the uses of this business strategy?
The uses of business strategies are provided below they are :
- Growth strategy of the launch of the new product in the market – It helps the organization by developing the market needs in meeting the demands, it helps in understanding the demographics of the market in which they are going to sell the products.
- Finding new market for the products – It also helps the company in understanding which market will be better in selling the new product.
- Product differentiation strategy – It helps the organization in setting the differences in the product from the competitor brands which helps them in staying competitive in the market.
What is the Criticism of business strategy?
Few of the criticisms of Business strategic plans are that it will be requiring huge amount of knowledge and experience in order to make the best plan to help the organization achieve the goals and aims. If in a business organization the units are different and the employees are working at different levels then
the business process modelling plans can create different types of problems for effective implementation. The strategic plan requires a huge amount of time, money and energy which most of the companies does not pay.
What is the related topic and concept of business strategy?
Few of the important concepts which should be kept in mind when studying about business strategies are :
- Components of a strategic statement
- Strategic management process
- Environmental sscvnniing in which the company is working.
- Strategic formulation
- Strategic implementation
- BCG matrices
- SWOT analysis
- Competitor analysis.
- Corporate governance.
