Brief Note on Business Strategy

James Cheng^*
*Correspondence: Dr. James Cheng, Department of Economics, Tufts University, Massachusetts, USA, Email:

Keywords

Market • Business • Strategy

Description

In day-to-day operations, you focus on improving detailed activities, such as reducing waste. The purpose of your activities should be to convert inputs, such as inventories and staffing efforts, into the products or services that are your output. You work on your business operations to improve the functioning of your company [1-3]. Your business strategy comes on top of that and ensures that your results align with your business goals and objectives and that you are doing the right things. For example, part of your strategy could be to compete by becoming more reliable. In this case, your activities may need to focus on ensuring that your product delivers everything your customers expect and on the reliability of your delivery and customer support.

There are a number of explanations why a business strategy is significant, including

Vision

A business strategy is important because it creates a vision that the entire organization must follow. You can lead and motivate your colleagues more effectively if they have clearly defined roles and responsibilities [4]. A strategy gives large groups of people a common goal. It ensures that no one loses sight of the organization's mission.

Trends

A business strategy enables decision-makers to identify trends and opportunities for future growth. To keep companies competitive, they need to adjust and re-evaluate their tactics regularly. A business strategy is thus a dynamic tool that companies can adapt and develop to cope with social and technological changes in the market. He protects them from complacency.

Competitive advantage

A business strategy encourages companies to search for the soul. It provides guidance for your business performance, both internally and externally. Companies that can identify their strengths and weaknesses understand each other better. This is crucial to gain a competitive advantage and ensure future profitability.

Levels of business strategy

The business strategy facilitates the smooth functioning of different levels of the company. It is a tool not only for top management but also for leaders of various business functions to use [5-7]. A business strategy can promote cohesive business ideals and cooperation among colleagues at all levels. Here is a detailed look at the three levels of business strategy.

Corporate level strategy

Enterprise-level strategy is at the top of the planning pyramid. This is where your business is going. Business strategy at this level is a comprehensive plan that affects all levels of an organization. It is prepared by senior management such as board members, investors and senior executives. They structure their objectives around expansion plans, acquisitions and mergers, diversification and new investment areas.

Business level strategy

CEOs develop and implement corporate-level strategies. They translate the course of the company into more achievable goals. At this level, leaders plan how to achieve the organization's mission rather than what the mission should be. For example, if the enterprise-level strategy is to diversify the business, an enterpriselevel strategy would be to rename a product for a new demographic.

Functional level strategy

Corporate -level strategies are the roles and responsibilities assigned to groups to support the Corporate -level strategy. At this level, executives and line managers delegate larger projects to smaller tasks between individual colleagues [8]. These guidelines are specific and tailored to the skills and qualifications of each employee. For example, a functional level strategy would be to commission a graphic designer to design new product packaging.

Conclusion

Strategic management is a continuous process that is essential to the success of the organization. Organizations are expected to ensure that they engage in strategic management as the success and survival of the organization depends on strategic management.

References

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7. Schappe, Stephen P. “Organizational Commitment, and Fairness Perceptions on Organizational Citizenship Behavior.” J Psychol 132 (1998): 277-290.
8. Allen, Natalie J and John P Meyer. “Antecedents of Affective, Continuance and Normative Commitment To The Organization.” J Occup Psychol 63 (1990): 1-18.