BUSINESS STRATEGY

Business Strategy

Business Strategy

Introduction

A business strategy explains the plans of a business i.e. how is it planning to succeed in the market. This strategy is planned to make sure that the company is able to evaluate its position against the competitors in the industry. Business strategy helps a business in formulating strategies according to the goals and objectives of the company and helps to target the potential customers. When a company is evaluating its own position, it sees what are the success factors of the companies that are on top in the industry and tries to formulate strategies and will make it the market leader in the industry. It seeks how it can achieve competitive advanatage that will keep it ahead of other companies in the industry.

Strategy

Strategy is a plan set out by a company by effectively using the resources for marketing its products and for creating a competitive strategy. This strategy is used for making sure that the companies make their strategies to compete in the market with other companies. It makes sure that company uses both of its resources i.e. monetary, as well as, human resources to compete in the market. Strategies are helpful when a company is designing its marketing plan and it helps the company to take new actions that will benefit the company. It will also make sure that the plan that the company is making effective use of the strategy and is implementing it properly (Moyer, 2002, pp. 26). The strategic plans that the company plans should be implemented very carefully because a lot of companies fail while implementing the plans. The companies should make sure that they successfully implement the strategies.

Role of Strategy in Strategic Planning

A strategy is an approach or plan, so strategic planning is the general planning for the proper management of a process. Strategic planning helps you to plan out the daily activities of your business or your project. It provides you with a comprehensive overview of what you do and where you go. Strategic Planning brings clarity to what you do and how you will get there in comparison of a plan of action that only affects daily activities. Strategic planning helps you answer the following questions: Who are we? What are our capabilities? What are we capable of? What problems are we trying to solve? What difference are we trying to do? Which critical issues must we address? What should we allocate our resources? What should our priorities?

The role of strategy in strategic planning is very important because it helps the person in making sure that the company implements the plan that is according to the goals and objectives of the company (Burns, 2007, Pp 82). Strategies should be formed that are in accordance with the objectives of the company because it will not be suitable for the company to build strategies that do not match the goals of the company. This is the reason strategy is very important in strategic planning because it helps the company in showing ...