What is a Business Strategy?
Almost every organization has a business strategy. The
strategy can be a mission, vision or formal plan. According to Andrews
(1971) in his book The Concept of Corporate Strategy defined it
as “Corporate strategy is the pattern of major objectives, purpose or
goals and essential policies or plans for achieving those goals, stated
in such a way as to define what business the company is in or is to be
in and the kind of company it is or is to be.”
As per the renowned management guru Needle, Business in context suggests
a four stage process of strategy formulation:
1. Consideration of environmental changes which bring about new
opportunities and pose new threats.
2. Assessment of the internal strengths and weaknesses of the
institution and in particular its ability to respond to those
opportunities and threats.
3. A decision making process influenced by the values, preferences and
power of interested parties.
4. A strategy generating process concerned with generating options and
evaluating them.
The process of business strategy is a mixture of rational and
non-rational formulation. Two organizations may have same capability,
environment but strategy can be different. For example, in the auto
mobile market, one assembler may go for volume manufacture that will
reduce the price another organization may have aims for higher margins
in terms of quality and niche market.
Business strategy formulation is completely ongoing process. As
the market change, organization can change their strategy formulation
for a short time. To be effective business strategy needs to be accepted
by throughout business process and help in tactical decision making
process.
Information technology/ Information System strategy is a way of ensuring
the rational development of the business. E-commerce has wider
implications than just Information System. E-commerce is a technology
for strategic information system in the formulation of business
strategy.
Back to Business Articles...
Business Management Books
To better understand the business strategy, this website has gathered
some of the finest books on ERP and business management.
|
|
