UNDERSTANDING THE CONCEPT OF BUSINESS STRATEGY

Understanding the Concept of Business Strategy



Understanding the Concept of Business Strategy

Introduction

An organization's top managers foster the development of business strategy capability “by engaging in such planning over and over again”. Just as, ongoing practice leads to the competence at the top, the practice of business strategy at other management levels leads to embedded competence within the entire management team (Morris,Kuratko,Covin,2008,56-89). Strategy process repetition leads to greater strategic thinking skills resulting in “more profound insights and judgments”. Just like other organizational processes, repetition of business strategy processes results in knowledge building, which will eventually become "embedded" in the organization (Morris,Kuratko,Covin,2008,56-89).

The use of business strategy tools in the practice of management continues to be important, especially in the dynamic and complex business climate that organizations currently face. With contributing factors such as globalization, and use of the Internet to facilitate global real-time exchange of information, this complex, dynamic environment is now the norm for modern organizations. Driven by technology and globalization, layers of management are shrinking, organizations are becoming more culturally diverse, and virtual organizational structures are now common The paper examines the business strategy of a leading hospitality, real-estate development, and lifestyle company Sbe. It focus n the strategic partnership, entering into foreign market and the challenges from competition.

Strategic Partnership and the International Expansion

Sbe can have the advantage of international expansion by making the most of the international expertise, the alliance will benefit both the partners because Sbe can provide the local management expertise whereas, the international company will give its expertise in terms of the wide scope of operations and the resources. The interesting thing is that each form of market access requires very different skills and of course each has its pros and cons. For example, offers a fresh start choice of all in accordance with our corporate culture, developing our own people. In counterpart, strategic alliances offer great advantages in terms of experience market but have big problems in terms of cultural, commercial or otherwise kind (Rukstad,2008,82-90).

A successful international company has the possibility to choose the best way to access the market and generally does repeat the same pattern again of expansion in different markets. Many organizations do not engage in business strategy, yet failure to plan effectively is considered a primary contributor to business failure. It is estimated that only 40% of businesses survive beyond six years of operation (Rukstad,2008,82-90). Following the worst economic and social factors in the United States in the last 75 years, many businesses appear to be even more vulnerable to failure. Understanding the benefits of using business strategy tools and systems in an "unstable" economic and social factors could lead to adoption of such tools and systems by more organizations, and lead to improvement in the business survival rate.

Entering Into a Foreign Market

Sbe should enter into the market of India; the hospitality industry in India is booming due to an increase of the foreign investment, therefore this market provides a lucrative opportunity for ...