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Strategy and Its Importance for Business- Essay - Desklib

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Added on  2020-02-24

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Strategy is a very important concept that has been studied for years. For making improvements in the business, a strategic approach by management in every function is important. This essay deals with the discussion of the strategy and its importance for business and for a non-profit organization. The later part of the essay discusses the challenges faced by the organizations in developing and implementing the strategy. The concept of the modern competitive environment and its relation with strategy is also discussed in the essay.
 

Strategy and Its Importance for Business- Essay - Desklib

   Added on 2020-02-24

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Running head: STRATEGY 0STRATEGY
Strategy and Its Importance for Business- Essay - Desklib_1
STRATEGY1Introduction:Strategy is the very important concept that has been studied since years. For makingimprovements in the business, strategic approach by management in every function is important.This assay deals with the discussion of the strategy and its importance for business and for a non-profit organization. The later part of the essay discusses about the challenges faced by theorganizations in developing and implementing the strategy. The concept of modern competitiveenvironment and its relation with strategy is also discussed in the essay.Strategy:Strategy is the concept that has been adopted in businesses by military. Strategy can be definedas the set of activities that bridges the gap between the means and the ends. The term strategy hasentered the business area by describing the activities or the steps that the company takes in orderto compete in the industry and to enhance the customer’s base (Besanko, Dranove, Shanley andSchaefer, 2009). Strategy is the result of the decision that has been made by the company’s topmanagement regarding the process or the policies that needs to be followed by the organizationin order to work effectively. It can be defined as the patterns of the actions that are beingimplemented in order to perform (Ireland, 2007). It can simply be explained as the direction inwhich the company performs in order to achieve its goals. Importance in business:Strategy provides direction to the company: as discussed that strategy is the set of activities thatneeds to be conducted in the company in order to perform the tasks. These strategies provide thedirection to the company to achieve its gaols. Thus it is very important for the business to makethe strategies to perform each and every task.Strategy helps in using the resources optimally: making the strategy also helps in using theresources effectively and intelligently (Johnson, Langley, Melin and Whittington, 2007). Thereare many resources available with the organza tin. Excessive use of these resources may increasethe cost of production. Thus, framing the strategy helps in using those resources effectively sothat cost of production can be maintained.
Strategy and Its Importance for Business- Essay - Desklib_2
STRATEGY2Enhancing business and customer’s retention: Strategy needs to be framed by the company inevery function such as marketing, sales, HR, operations etc. making the strategy for differentfunction results in enhancing the business practices and also helps in retaining the customers asthe customers also prefer to associate with the company having proper functioning (Gobble,2012).Example: Woolworth is the company that operates in supermarket retail industry in Australia. Itis one of the leading companies in the industry and its strategies are its competitive advantage.Its effective strategies allow the company to compete with its competitors. The companyevaluates the industry and the market and develop the strategies accordingly. The recent strategyof the company is to reduce the prices and cater the market (Dos Santos, 2011). As far as theexpansion strategy is considered, the company focuses on developing new stores in Australia sothat customers reach can be enhanced.Importance in NPO:The importance of strategy in Non-profit organization is slightly different from the for profitorganization. This is because the success of the strategy in for-profit organization can bemeasured by its revenue, sales etc. Non-profit organizations also need strategy but their aim isdifferent (Nestorovska, 2013). The effectiveness of strategy in this organization can bedetermined by the large number of people the organization is serving. Effectiveness: Strategy helps in making the process effective in the non-profit organizations.This is because if the processes of these organizations are effective then only the organizationcan attract more number of people (Doole and Lowe, 2008).Fund raising: Non-profit organisation need funds and cash inflow, which they cannot earn buthave to get it from the other organizations (Teece, 2010). This process also required the companyto make strategy so that more and more profit organization invest and support the non-profitorganization.Planning: It is one of the major advantages the non-profit organization has by making thestrategies. Planning is not only important for non-profit organization but also for the for profitorganizations.
Strategy and Its Importance for Business- Essay - Desklib_3

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