Monday, June 3, 2019

Advantages of Business Strategies

Advantages of Business StrategiesStrategy is the direction an scope of an plaque over the want-term which achieves advantage for the organisation through its configuration of resources at heart a contest course purlieu, to collaborate the inevitably of grocery stores and to fulfil stakeholder scenes.Business outlineBusiness strategy is the only driving force behind some(prenominal) favored commercial enterprise since it builds the foundation for the same. The business strategy is not just a statement of intent or a mere speech. Their scope is not just limited to the management. There argon different strategies as per the business and the best one among them must be chosen which can fulfil the postulate of the organisation and emends of a rapidly changing world for revolutionary business strategies. It must as closely as be able to handle the internal pressure of the organisation when the forge is being executed.How can the business perform better than the competiti on in those merchandises? (Advantage)What external, purlieual factors affect the businesses ability to compete? (Environment)Where is the business trying to enamour to in the long-term (direction?)What resources (skills, assets, finance, tellingships, technical competence, and facilities) argon required in order to be able to compete? (Resources)Which markets should a business compete in and what agreeable of activities is involved in such markets? (Markets scope)Strategy at Different Levels of a Business?What are the surveys and expectations of those who arouse power in and around the business? (Stakeholders)Definition of business surroundingsStrategy is the direction and scope of an organisation over the long-term which achieves advantage for the organisation through its configuration of resources within a challenging environs, to meet the needs of markets and to fulfil stakeholder expectations. http//tutor2u.net/business/strategy/what_is_strategy.htmWhy study the busine ss surroundIn each and every organisation there is some relation with business environment, each and every type of business is surrounded with environment straight or indirectly. Business environment is surrounding with its customers and stakeholders and it own of political as well as legal forces this all together makes business environment, in order to achieve profit and withal to fulfil the stakeholder expectation a business has to change its environment as per market need. The organisation which downstairsstood the business environment and make necessary changes accord to the environment pull through in business in terms of profit and needs of stake holders. On the hand the business which does not changes according to the environment leads to failure of the business, so for each and every organisation business environment, Is really measurable.Different level of business strategyIn each and every organisation strategy is oblige at different levels of company among them the following is the modern levels strategy is being employed by organisatation.Corporate strategyThis strategy is considered and completely influence by stakeholder needs. At this level fundamental conclusion about future direction of an organisation with the purpose to fulfil the needs of stakeholders at this level strategy is through by considering the stakeholders because they are the only one who invest in the organisation so the merged strategy is or related stakeholder expectationsBusiness social unit strategyThis levels of strategy is completely focused on how a business competes in a special targeted market, it concerns strategic decision in relation to product, meeting needs of the customers , taking benefit over competitor and employing strategy related to business operation and creating new opportunities for business. This is the only level which directly influences with the customers in respect to corporate strategy.Operational strategyThis level f organisation is concerned with how every part of the business is organized to fulfil the needs of corporate and business unit level strategy direction. Its major focuses on the issues related to recourses and processes. this level is also employing strategy related to people and surrounding of business.Key elements of marketing strategic decisionMain bodyIn each and every organisation Business environment devour surviveence by knowingly or unknowingly because it cannot exist without an environment. The process of strategy management is basically divided into twain major environment and they are Microenvironment and Macro-environment. In the challenging business environment this are two main aspect that influences each and every businesses which are also kn own as inner environment (micro environment) which hold direct effect or relation with the business for example customer. And outer environments (macro environment) which have indirect effect on the business for example political factor. Ther e is an very clear indication that influences of environment or speeding up in the market so the organisation have to take it earnestly consideration as the company who had taken its seriously had succeeded in the market and the organisation ignored its had failed in the market, both the major type and its factor of influences are briefly described as under.Macro environment (Outer environment)The political environment Politicians have instrumental in shaping general nature of external environment and being responsible for the legalization of rules and regulation that affects limited type of organisation, at very general level the stability of political system affects the business and strategy so the organisation has to change its strategy according to the legal matters otherwise it can indirectly affects the business and its activitiesThe social and subtlety environment The organisation is also being affected by its social and culture environment as the generation are also chang ing so the business environment has to be change according to the changing social needs, it is all- important(a) for the business to fully appreciate the culture levers of the society because if a business is doing its business in another country which is quite different from its own than there the attitude towards the product is different as compare to its own country, so for an organisation it is really important to consider the social and culture environment of the country where its doing business.The demographic environment As population is growing daylight by day the size and the age is also going so in respect to this demographic environment changes the organisation has to change its strategy towards the stocks and prediction of the market because most organisation are dealing with the product which they have to agree ready in advance by predicting the future of salesThe engineering science environment As this is new era of business so the organisation have to overcome wi th new and latest technology because in this environment as technology is outdated the product is out of the market, so the organisation has update its technology within a time period, because once thrown out of the market and to get again the same position in the market it take a long time so this environments is really important and being speedily changes.Economic Business and Economy are highly inter related. Businesses cannot be successful in an economy on decline and if businesses are not doing well it is highly unlikely for the economy to boom. For ex Lehman brothers, this was the fast company to get cursed because of stinting crisis.Legal Legality means doing whatever the law permits. Same applies for business also. Business strategies and operations are permissible as long as they are legal. Business needs to function within the legislative limits. Business not only needs to comply with the existing legislations but also the changes in them. (strategy management peter Fitzr oy/James Hulbert)Micro environment (Inner environment)Employees In running each and every organisation employees are must to carry out day to day business activities and they are the one who deals with other parties of the business on behalf of the business as they are having direct effect to the business they falls under microenvironmentCustomers Customer are a crucial part of an organisation in microenvironment its really simple no customer means no business. An organisation should be seriously consider about the changing requirement of the customer, because in challenging business environment everybody are targeting the customer so this factor of micro environment is really important for each and every organisationSupplier The supplier provides an organisation with goods and services than is being transformed by the organisation and by adding value to it than further sold to its customer this factor of microenvironment is also important because if there is not proper supply and t here is no product and in challenging business environment the product service should be fast as well as quickCompetitor In challenging business environment there is high rate of competition in the market so its very important to keep updating the strategy of the competitor and try to ascertain their strategy like their future moves their future product this is also an important microenvironment in such a challenging business environment.Financial organization This monetary environment is consist of both voiceholder and the investor which support the organisation and they are timely being reassured about the achievement of goals both short and long term because if they dont trust the company than they might take their investment back from the organisation and which effects the a lot to the business.The government The demands of government agencies are also consider of microenvironment commercial organisation provides government with revenue enhancementation and revenue so the or ganisation has to in touch with the government policy in relation to their tax and regulation and can make their strategy according to the changes of the regulation so the organisation has to take careful consideration of this environment alsoInternal environmentInternal environment is very important part of any business environment and include finance, marketing, production, personnel and RD. These elements are considered to be within the organisation. The most important job of an internal environment is developing strategies for an organisation management process. Is also focuses on the point that the organisation should always have a well trained staff to do a right job at the right time since they are the biggest asset of any organisation and also they are directly related to most important thing of any business i.e. customers. It also focuses on the point that business strategies should always change with the changing need of the customers. little EvaluationSWOT ANAYSIS How NO KIA uses SWOT analysis to determine internal factors and external factors.Strengths (INTERNAL)The largest cell phone vendor by far, with almost doubles the market share of nearest competitor.The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 marketing brisk phones in the world.One of the top 20 brands in the worldThe re-sell value of Nokia phones are high compared to other companys productWeakness (INTERNAL)The scathe of the mobile phones offered by the company.The service centers in India are very few as compared to the number of users and therefore after sales service are not good. tedious to adopt new ways of thinking.Opportunities (EXTERNAL)Telecommunication growth in India being at the peak time, Nokia has an opportunity to increase its sales as well as the market share.Make a significant position in the cdma market.New growth markets where cell phone adoption still to come.Threats (EXTERNAL)The threats like e merge of other big mobile companies such as Motorola, Sony Eriksson, etc in the market.The growing demand of WLL networkLate in the entry of 3G market.How Acer uses Porters 5 Forces as an analytical tool to determine strategy and success over its competitorsThreat of substitutes Acer face that from rival dell who can provide the same goods and value and sell at a much lesser scathe, as there is a threat from consumer to switch to alternatives, this could force Acer to reduce its product price and income to struggle with other markersBargaining power of suppliers The exact for suppliers to retailers is that is they pay a helpful price for its supplies, and would not sell to retailers if the price quoted was not paid, then the suppliers would not sell its goods of them. Since Acer having a market share from other company as well as small shop keepers, has an advantage to dictate the price the suppliers will be paid for their goods, thus if supplier do not tend to decrease price, it i s clear that they would be left with a smaller market share to sell their product.Power of consumers Due to a large competition in the electronic market industry, it has forced markets to switch to low product terms in order to attract more buyers, thus more power favoritism the buyers, in order to achieve more customers and trade with struggle is more victorious to customer preservation, and has also led to increase in profits. And customer wants lower price and service, better choices.Threat to new entrants Due to high market share of company like Acer, Dell, Sony which has to led to barriers for new markets to enter competition, since most of these markets lower prices of their goods in order to win a better client care, pays a much lesser which would buy less goods at a better rate. Thus Acer also has an upper hand on economies of scaleHow Mc Donalds uses PESTEL as a strategy to overcome challenges and gain advantages over its competitors.Political All the international operat ions of Mc Donalds are as per the policies enforced by the individual governments. On the other hand, the company is controlled by the individual policies and regulations of operations. like any business venture, these McDonalds stores have to contend with the issues of employment procedures as well as their tax obligations so as to succeed in the foreign market.Economical Food chains like Mc Donalds do have their individual concerns involving economic factors. Their Branches and franchises have the tendency to experience hardship in instances where the economy of the respective states is hit by inflation and changes in the exchange rates. Their problem depends on the rejoinder of the consumers on these fundamentals and how it could influence their general sales. Exchange rate fluctuations also play a significant role in the operations of the company. The companies also have to consider the economic standing of the state on which they operate on.Socio-Cultural The organisation impr oves on establishing a positive mind-set from their core consumers. McDonalds indulge a particular variety of consumers with definite types of personalities. In 2005 McDonalds has launched a sensibly valued set of food that tenders a reliable level of quality for the respective market where it operates. skillful McDonalds generates a demand for their own products. The companys key tool for marketing is by means of television advertisements. The companys marketing is also done through toys and play spots. The operations of McDonalds have significantly been infused with new technology. Elements like the inventory system and the management of the value chain of the company allows for easy payments for their suppliers. The integration of technology in the operations of McDonalds tend to add value to their products.Legal The reputation of McDonalds is apparently a huge matter and with the opposition to the fast food industry Mc Donalds apply a more consideration on their corporate socia l responsibilities. The company has provided their customers the relevant data that they need with reference to the nutritional substances of their products. This is to attend to the arguments of obesity supercharged against the products of the company. Environment Mc Donalds employ of non-biodegradable substances for their drinks glasses and Styrofoam coffers for the meals. The social responsibilities of McDonalds on the state are influential to the operations of the company. These entail accusations of environmental damage. (http//ivythesis.typepad.com/term_paper_topics/2009/02/pestle-analysis-of-mcdonalds.html)EthicsStrategic management must also ensure ethical values i.e. personal values and fairness. Many of the organisations around the world are not following this and hence they have to face the problem in the future. A commitment to transparency is necessary with greater communication and sharing of information within the firm. Strategic management is also about meeting the share holders expectation and capturing the full potential of the firm. It also takes into consideration the future perspective of the strategy. It also includes an alternative if in case the plan does not work. In short Strategic management is not an easy task if properly implemented. .(strategy management peter Fitzroy/James Hulbert)STAKEHOLDERS AND ORGANIZATIONAL VALUE1. Shareholders They are one of the important factors in micro-environment because they all the one who had given capital in the company so in order to make their expectation the stakeholders are being received by the short term and long term goal in challenging business environment they are one of the important factors of environment.Conclusion and RecommendationA sound corporate strategy is the best way to ensure for the organization to create value for stakeholders and to unify the business activities to meet the organizational objective. Successful companies have gone through successive incremental strategic cha nges that were appropriate at the time. Thus it is imperative that trade-offs are essential to any successful strategic decisions.Most companies owe their success to the unique strategic position derived from strategic management of behavior, operation and critical rationally scanning of the business environment. It enables the company to take assessment of the current position, analyze and prepare for the future. Strategy provides a structure for decision making and enables organizations meet the requirement of the stakeholders by number of the available resources. Use of Strategic Analytical tools like few discussed above empower organizations to take picture of their current place and optimize their resources to achieve matched position.Businesses cannot afford to overlook their environment. All its income, opportunities, perspective, problems are factors of its environment. Strategy cannot be formulated with taking into account environmental influences. positive monitoring of the environment and incorporating the environmental trends provides the spew for optimizing opportunities and configuration of resources to achieve the business objective.ReferencesRichard lunch, corporate strategy4th edition, Pearson education ltd.Page no. 2-5.Peter Fitzry, strategy management, John wiley sons ltd. page no.40-50http//ivythesis.typepad.com/term_paper_topics/2009/02/pestle-analysis-of-mcdonalds.htmlAdrian palmer Bob Hartley, The Business environment fifth edition, make by Mc-Graw-Hill Education.Johnson. G, Scholes. K, and Whittington. R. (2008).Exploring Corporate Strategy. 8th ed. London Prentice Hall. pg7.Lynch, R. (2009), Strategic Management, 5th ed. London, FT Prentice Hall.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.