Business Strategy Essay: Role of Problem Definition, MGT80002

This essay explores the concept of business strategy, its role in organizational success, and the significance of problem definition in strategic planning. The essay examines the meaning of business strategy, its purpose, and its role in achieving business goals. It delves into how businesses can act effectively and responsibly, considering sources of uncertainty within the organizational environment. The essay uses Woolworth as a practical example to illustrate the concepts and how problem definition shapes the strategic engagement of the business with its stakeholders. The importance of engaging stakeholders effectively and responsibly is also discussed. The essay concludes by summarizing the key findings and emphasizing the importance of business strategy in shaping organizational growth and success.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business strategy is a process of planning strategies that will help an organisation flourish
and grow. The chosen firm for this report is Woolworth it is a developing retail company that
provides variety of products like household, stationary, health and beauty etc. This following
report will shed a light upon the concept of business strategy, its role in achievement of aim of an
organisation, ways that will ensure the engagement of stakeholders etc.
MAIN BODY
Business strategy is a set of plans and actions that helps a business to grow. According to
Friedland and Jain (2020) it is a process by which a company plans its strategy in order to attract
the customers. It is an important activity by which a company plans its action and influence the
decision-making which assist it in achievement of its goal and secure a place in the competitive
business environment. Business strategy can be referred by Sia, Soh and Weill (2016) as a
backbone of an organisation which directs a path to achievement of goal and a fault in the
strategy can result in the down fall of a business. Overall, it is a concept used to strengthen a
business, also a good business strategy helps a business to reach higher levels. Thus, Woolworth
currently faces the problem of slow down the customer cycle and slowing growth in the market.
Hence, at that time business strategy plays an important role in order to solve the problem. Such
that company develop strategy to attract customer by offering different discounting strategy.
Business aim and purpose refers to a goal that it wants to achieve. An aim of an
organisation is to get success and purpose is to serve satisfaction to the customer by offering best
goods and services. A business aim is an overall target which it tempts of accomplished and its
acquire such with the help of business objective. Business purpose is offering value to products
in order to meet consumer needs. Similarly, Woolworth's aim is to be of one of most responsible
retailer in the world and providing value to all dimensions of business perspectives. Whereas, the
purpose of quoted firm is to providing quality products and enhance the shopping experience of
customers.
Business strategy plays a very important role in achievement of business success such
that it helps in analysing the strengths and weakness of a business. Moreover, it guides and
understand how the business is performing and what measures to be taken to improve the
performance and fight the competitors. It identify the modern trends and opportunities and help

you mould your route to success (Vlachos, 2016). A well-defined business strategy helps in
analysing the best place to put efforts and resources in order to attain sustainable future. In the
context of Woolworth, to overcome the problem of slows down the customer cycle, effective
strategy are taken. Such that by use of innovation technology and product promotion campaigns
have helped in achieving success.
Responsible and effective business refers to the ideas of looking after the needs and
requirement of the stakeholders which include investors, employees, customers etc. The business
should act in such a way that benefits the society and give value to stakeholders satisfaction
(Importance of business strategy, 2021). An organisation in this direction should assist in
promoting such policies that will help in the development of a well-being society. Reduction of
such polices create negative impact on the environment will assist the firm to be more effective.
In the same way, Woolworth also act responsibly and effectively in many ways like involvement
in charitable, promotion of volunteering, reduction of carbon, improvement in labour policies,
adopting policies that are beneficial to the environment and practising fair trade etc. Thus, if a
business act effectively and responsibly this will result in the growth of the organisation and
benefit it with profitability.
Uncertainty in an organisation refers to the fluctuation which a business face due to
sudden changes in internal and external environment. Therefore, these are the sources through
which company's performance is affected in negative manner and somehow leads to affect the
results in opposite manner as well (Byrne and Ribeiro, 2018). These sources are as mentioned
below:
Internal sources: It is refers to the inner strength and weakness of the company which
aid in growth of a business. But somehow, it also leads to creates negative impact upon the
business as well. Like, Woolworth's faces issue of slow customer cycle due to Covid-19 which
also leads to affect the internal environment i.e. financial performance of a company. On the
other side, perception of the customer is also fluctuated as per the market trend and thus
company is not able to meet such demand which leads to increase the problem. That is why, this
internal sources creates uncertainty within business.
External sources: this sources are directly impact upon the business performance, as
there are large number of external factors which have direct impact upon the ability of
Woolworth. For example, due to political instability, company change its business strategy that

somehow leads to affect the results in adverse manner. As company is operating at international
level and that is why, it is not easy for the company to develop different strategy for customers.
For that technologies are implemented but on the other side, due to increase in cybercrime
company faces issue and this in turn leads to external source of uncertainty within business
environment.
A business can achieve its aim by consulting problems with stakeholders, so that
appropriate outcomes will be generated. That is why, there is a need to engage stakeholders
effectively and responsibly (Dale and et.al, 2019). As Woolworth faces issue of customer base
and for quoted firm customers are also considered as a key stakeholder to whom it has to
manage. Therefore, company has to implement some strategies in order to engage their
stakeholder (customer) such that by offer discount on particular products, conduct survey in
order to analyse the need and then implement the same within stores that helps to resolve the
problem.
CONCLUSION
The about mention report concluded that business strategy plays an important roles in
shaping an organisation growth and success. The report further helps to attain the purpose and
aim of an business and its importances. From the study it has been summarized the different
sources of uncertainty such as missing information, conflicting information etc. effecting
organisational environment. On the whole, the report has been also extended the idea of effective
ways that will ensure stakeholders engagement in an organisation.

REFERENCES
Books and Journals
Byrne, J. P., Korobilis, D. and Ribeiro, P.J., 2018. On the sources of uncertainty in exchange rate
predictability. International Economic Review. 59(1). pp.329-357.
Dale, V. H. and et.al., 2019. Engaging stakeholders to assess landscape sustainability. Landscape
Ecology. 34(6). pp.1199-1218.
Friedland, J. and Jain, T., 2020. Reframing the purpose of business education: Crowding-in a
culture of moral self-awareness. Journal of Management Inquiry, p.1056492620940793.
Sia, S. K., Soh, C. and Weill, P., 2016. How DBS Bank Pursued a Digital Business Strategy. MIS
Quarterly Executive . 15(2).
Vlachos, I. P., 2016. Reverse logistics capabilities and firm performance: the mediating role of
business strategy. International Journal of Logistics Research and Applications. 19(5).
pp.424-442.
Online
Importance of business strategy. 2021. [Online]. Available through:
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