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Business essay

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Business essay example

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Business essay

  1. 1. Business Strategy 1 Running head: Business Strategy Importance of Business Strategy
  2. 2. Business Strategy 2 Introduction A person without legs cannot walk; same way business without strategies cannot grow. Good strategies help business people to cover long distances in short period of time like Usain Bolt of Jamaica covers 100 meters under 10 seconds. In the absence of strategies business will run like a person without legs. Strategic planning is essential for all the businesses, irrespective of small or big, to achieve their long term goals. Strategic management is a managerial activity of setting objective and Tactics for achieving long term business goals. It provides proper direction to the enterprise. Any actions or set of decisions designed to achieve the objectives of a company can be referred as the strategies of that company (Robinson, 2009, p.3) Successful strategies of one company need not be successful for another company. Successful strategies in one market need not be successful in another market even for the same product and the company. Strategies need to be formulated based on the nature of the product and the nature of the market. This paper briefly explains the importance of strategies for a business. Importance of Business Strategy American business tycoon Parker Pen Company has earlier tried to market their products globally using the same marketing strategies they successfully used in America. They thought for same product, same marketing strategies are required everywhere. They failed to understand the fact that ‘product is the same but the market is different’ in different places. “The idea of selling pens the same way everywhere did not sit well with many parker subsidiaries and distributors. Pens were indeed the same, but markets, were different” (Marketing across cultures, n. d, p.195). Market is different socially, politically and economically, and based on these differences the buying habits of the consumers are also
  3. 3. Business Strategy 3 different. In short, Parker Pen Company failed to formulate right strategies for each market and failed miserably in their effort to exploit the global market opportunities opened by globalization. “From day one onwards, business strategic planning is crucial to your business’s growth and success, and without an eye to the long term, it would be impossible to increase the size and stature of your business” (Daud, 2010). Everything is undergoing changes in the current world and business concepts are also not an exception. Yesterday’s successful strategies may not be successful today; today’s successful strategies need not be successful tomorrow. For example, earlier, marketing people adopted all tactics to capture business. But now they realized that such blind tactics may not last long and for achieving long term goals it is necessary to establish relationships with their customers. Globalization has opened many opportunities for organization for international business. Earlier, companies were mainly focussed on formulating strategies for their country of operation. But outsourcing and offshoring are common business strategies adopted by big organizations and hence their strategies must aim at the overseas countries also. Competitive business strategies are essential for the current business world. Instead of attacking the strong points of the competitors, modern entrepreneurs are focussing on attacking the weakness of their competitors (Kotelnikov, 2001). Many entrepreneurs earlier focussed on attacking the strong points of their competitors and failed miserably. The current business people have realized that instead of attacking the strong points, it is better to catch the weak points. Thus business strategies are changing day by day based on the advancements in science and technology and changing life styles and consumer behaviours. The introduction of computer and internet has rewritten most of the conventional business strategies. Online business is one of the rapidly growing business segments at
  4. 4. Business Strategy 4 present. Entrepreneurs have realised that their conventional means of advertisements have limitations in reaching out all the potential consumers and internet provides an opportunity to implement custom made strategies for each customers. Thus business strategies are changing and entrepreneurs are making every effort and spending much for innovating strategies along with new products. Conclusions Strategic management is the core of any business for which help the entrepreneur to achieve his long term goals. Current Businesses are working on strategies rather than resources. A business group rich in resources and poor in strategies may not go places whereas a business rich in strategies and less in resources may excel. In short, strategies are the backbone of any business.
  5. 5. Business Strategy 5 References 1. Kotelnikov Vadim, 2001, Business Strategy Tactics to Beat Your Competition, Retrieved on 16 January 2010 from http://www.1000ventures.com/business_guide/business_strategy.html 2. Daud Naz, 2010, The Importance of Business Strategy Planning, Retrieved on 16 January 2010 from http://www.articlesphere.com/Article/The-Importance-of- Business-Strategy-Planning/156896 3. Marketing across cultures,(n. d) Retrieved on 16 January 2010 from http://www.sam.sdu.dk/undervis/90434.E04/Spoergsmaal_til_Case_Tekst_Par ker_Pen.pdf 4. Robinson Pearce, 2009, Strategic management, The McGraw−Hill Companies, 2009
  6. 6. Business Strategy 5 References 1. Kotelnikov Vadim, 2001, Business Strategy Tactics to Beat Your Competition, Retrieved on 16 January 2010 from http://www.1000ventures.com/business_guide/business_strategy.html 2. Daud Naz, 2010, The Importance of Business Strategy Planning, Retrieved on 16 January 2010 from http://www.articlesphere.com/Article/The-Importance-of- Business-Strategy-Planning/156896 3. Marketing across cultures,(n. d) Retrieved on 16 January 2010 from http://www.sam.sdu.dk/undervis/90434.E04/Spoergsmaal_til_Case_Tekst_Par ker_Pen.pdf 4. Robinson Pearce, 2009, Strategic management, The McGraw−Hill Companies, 2009

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