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Business Management & Strategic Management Study

   

Added on  2020-02-24

9 Pages2633 Words32 Views
Business Management and strategicmanagement

INTRODUCTIONThe strategy can be defined as systematic planning procedure which is designed toattain overall objectives of business by considering internal as well as external environmentalfactors. Strategies are highly significant for business as it assists in efficient planning andexecuting business activities to achieve desired goals (Walker and Madsen, 2016). Thepresent study is based on the description of the strategy and its importance for business andnon-profit organizations. The study will include challenges faced by managerial parties inimplementation and development of strategy by considering relevant examples. In addition tothis, the study will also include the relevance of strategy in present competitive environment. MAIN BODYStrategyThe strategy is path followed by the organization to achieve their goals andadvantages over a long term. Strategy management is done through allocating resources insuch a way that fulfil the needs of customers, mould business process with the changingenvironment and meet the expectations of stakeholders. In other words, it can be cited as,considering the direction in which where the organization must go in order to attaincompetitive advantage (Priem, Wenzel and Koch, 2017). It is the approach of assessing thescope of the market by which company will get to know the competitiveness and activitiesinvolved in those markets. The effective strategy ensures that business is performing its bestin the market and determine activities and resources that are essential to meet the goals andattain advantages by considering the internal and external factors that will directly impact thebusiness. Strategies are used at different stages of an organization as the existence of the sameis important for all operational activities the business varying on the basis of management ora business group to individuals functioning in it (Morden, 2016). Different type of strategiesis enumerated as below:Corporate strategy: This strategy concerns the total scope and aim of the firm in order tomeet the expectations of stakeholders. It is a significant stage as it thoroughly influenced bybusiness investors and guides to maintain strategic decisions within the organization(Verbeke, 2013). Corporate strategy is frequently acknowledged as a mission statement.

Business unit strategy: This strategy is concerned with the competitive advantages in aspecific marketplace (Peteraf, Gamble and Thompson Jr, 2014). It assesses strategy decisionmaking regarding customer satisfaction, competitive advantages, products, drivingopportunities etc. Operational strategy: It is concerned with the organizing of business activities in such a wayto serve the business-unit level strategic direction. Thus, this strategy concerns on issuesregarding individuals, resources and processes etc.Importance of strategy in businesses and not-for-profit organizationsBusiness entitiesWith the changing business environment, from stable to the competitive environment,the strategy is considered to be a vital part of attaining objectives of business set by missionand vision of business entities. Strategy plays an important role in business success as thereare several reasons why strategy must be implemented. Firstly, there must be proper planningin business, and effective strategy provides actions and directing plan, it introduces a clear,precise and sound way for the same (Chen and Jermias, 2014). The strategy is inclusive ofproper direction for an organization to create a road map that how goals will be achieved witha comprehensive action plan. Creating and following progress beside yearly working plan isconsidered as a significant management tool. The company must concern the past experienceand make planning according to them in order to prevent the mistakes happened in the pastfew years.Subsequently, many types of research provided several concepts regarding strategicmanagement in order to efficiently making use of firm’s resources to achieve their goals andobjectives.Strategy refers to an integrated and complete plan intended to guaranteeachievement of business objectives (Albeladi and et al., 2014). Strategy assists in organizingfunctions and merging them properly so as to attain competitive edge through value adding inactivities to satisfy ultimate users of products provided by business entities and to attain thebusiness goals of the mission and vision.Not for profit organizationsStrategic planning enables NPO to use their human resources as well as financialresources carefully and effectively. Furthered decisions related to expenses and costs arebased considerably on judgments regarding the impact they impose on improvement in

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