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Advantages of Business Strategies

"Strategy is the path an scope of the organisation above the long-term: which achieves benefits for the organisation through its configuration of resources in just a challenging business environment, to meet up with the needs of market segments and also to fulfil stakeholder anticipations. "

Business strategy:

Business strategy is the one driving drive behind any successful business since it builds the building blocks for the same. The business enterprise strategy is not only a statement of intent or a mere speech. Their scope is not just limited to the management. There are different strategies as per the business enterprise and the best one of them must be chosen which can fulfil the needs of the organisation and emends of an quickly changing world for ground-breaking business strategies. It must also have the ability to handle the inner pressure of the company when the program is being executed.

  1. How can the business enterprise perform much better than the competition in those marketplaces? (Benefits)
  2. What external, environmental factors have an effect on the businesses' potential to be competitive? (Environment)
  3. Where is the business looking to get to in the long-term (route?)
  4. What resources (skills, resources, finance, relationships, technological competence, and facilities) are required in order to be able to compete? (Resources)
  5. Which markets should a company compete in and the type of activities is involved in such markets? (Markets; opportunity)
  6. Strategy at Different Levels of a small business?
  7. What will be the values and expectations of those who've power in and around the business? (Stakeholders)

Definition of business environment:

"Strategy is the course and scope of your organisation above the long-term: which achieves benefits for the organisation through its configuration of resources within a challenging environment, to meet up with the needs of market segments and fulfil stakeholder goals". http://tutor2u. net/business/strategy/what_is_strategy. htm

Why study the business enterprise environment:

In every single organisation there is some connection with business environment, each and every kind of business is ornamented with environment straight or indirectly. Business environment is surrounding with its customers and stakeholders and it have of political as well as legal causes this altogether makes business environment, to be able to achieve revenue and also to fulfil the stakeholder expectation a company must change its environment as per market need. The company which understood the business enterprise environment and make necessary changes in line with the environment succeed in business in terms of revenue and needs of stake holders. Over the hand the business which does not changes based on the environment leads to failure of the business enterprise, so for every single and every organisation business environment, Is actually important.

Different degree of business strategy:

In each and every organisation strategy is utilized at different levels of company among them the following is the present day levels strategy has been employed by organisatation.

Corporate strategy:

This strategy is considered and completely affect by stakeholder needs. At this level fundamental decision about future way of an company with the purpose to fulfil the needs of stakeholders as of this level strategy is done by considering the stakeholders because they are the only one who invest in the organisation therefore the corporate strategy is or related stakeholder expectations

Business unit strategy:

This levels of strategy is completely focused about how an enterprise competes in a particular targeted market, it concerns proper decision with regards to product, interacting with needs of the clients, taking advantage over competition and employing strategy related to business operation and creating new opportunities for business. This is actually the only level which directly influences with the customers according to corporate strategy.

Operational strategy:

This level f company can be involved with how every part of the business is organized to fulfil the needs of corporate and business and business unit level strategy course. Its major targets the issues related to recourses and operations. this level is also utilizing strategy related to the people and encircling of business.

Key elements of marketing tactical decision

Main body:

In every single company Business environment have presence by knowingly or unknowingly since it cannot exist without an environment. The process of strategy management is actually divided into two major environment and they are Microenvironment and Macro-environment. Within the challenging business environment this are two main aspect that affects each and every businesses that are also known as internal environment (micro environment) that have direct effect or connection with the business for example: customer. And exterior surroundings (macro environment) which have indirect effect on the business for example: politics factor. There can be an very clear indicator that affects of environment or accelerating in the market so the company have to take it very seriously consideration as the business who had used its seriously acquired succeeded in the market and the organisation disregarded its had failed on the market, both major type and its own factor of influences are briefly referred to as under.

Macro environment (Outer environment):

  • The politics environment: Politicians have instrumental in shaping basic nature of exterior environment and being in charge of the legalization of guidelines and legislation that influences specific type of organisation, at very standard level the steadiness of political system affects the business and strategy so the organisation must change its strategy in line with the legal issues otherwise it can indirectly affects the business and its activities
  • The social and culture environment: The organisation is also being influenced by its communal and culture environment as the generation are also changing so the business environment has to be change according to the changing communal needs, it is crucial for the business to fully appreciate the culture ideals of the contemporary society because if the business is doing its business in another country which is quite not the same as its than there the attitude towards the product is different as compare to its own country, so for an company it is absolutely important to consider the social and culture environment of the country where it's conducting business.
  • The demographic environment: As society is growing day by day the scale and this is also going so according to this demographic environment changes the company has to change its strategy on the securities and prediction of the market because most organisation are working with the product which they have to keep ready in advance by predicting the continuing future of sales
  • The technology environment: As this is new period of business so the organisation have to triumph over with new and most advanced technology because in this environment as technology is outdated the product is out of the market, so the organisation has revise its technology within a time period, because once trashed of the market and to get again the same position on the market it have a long time which means this environments is really important and being speedily changes.

Economic: Business and Market are highly inter related. Businesses cannot be successful in an economy on decline and if businesses are not successful it is highly unlikely for the overall economy to increase. For ex girlfriend or boyfriend Lehman brothers, this is the fast company to get doomed because of monetary crisis.

Legal: Legality means doing whatever the law enables. Same applies for business also. Business strategies and procedures are permissible as long as they can be legal. Business must function within the legislative restrictions. Business not only needs to comply with the existing legislations but also the changes in them. ("strategy management" peter Fitzroy/Wayne Hulbert)

Micro environment (Internal environment)

  • Employees: In running every single organisation employees are must to handle daily business activities and they are the main one who handles other parties of the business enterprise with respect to the business because they are having direct impact to the business they falls under microenvironment
  • Customers: Customer are a crucial part of your organisation in microenvironment it's really simple no customer means no business. An company should be you should think about about the changing dependence on the client, because in challenging business environment everyone are targeting the client which means this factor of micro environment is actually important for every and every organisation
  • Supplier: The distributor provides an organisation with goods and services than has been altered by the organisation and with the addition of value to it than further sold to its customer this factor of microenvironment is also important because when there is not proper resource and there is absolutely no product and in challenging business environment the merchandise service should be fast as well as quick
  • Competitor: In challenging business environment there is higher rate of competition in the market so it is very important to keep upgrading the strategy of the rival and make an effort to understand their strategy like their future steps their future product this is also an important microenvironment in that challenging business environment.
  • Financial company: This financial environment is consist of both shareholder and the entrepreneur which support the company and they are well-timed being reassured about the achievements of goals both short and long term because if they don't trust the company than they might take their investment again from the organisation and which effects the too much to the business.
  • The federal government: The needs of government organizations are also consider of microenvironment commercial organisation provides authorities with taxation and earnings so the company has to in touch with the government coverage in relation to their taxes and legislation and can make their strategy in line with the changes of the rules so the organisation has to take careful consideration of this environment also

Internal environment:

Internal environment is vital part of any business environment you need to include finance, marketing, creation, staff and R&D. These elements are considered to be within the organisation. The most important job of an internal environment is producing strategies for an company management process. Is also focuses on the point that the organisation should have a well trained personnel to execute a right job at the right time being that they are the biggest advantage of any organisation as well as are straight related to many important things of any business i. e. customers. It also focuses on the idea that business strategies should change with the changing need of the customers.

Critical Evaluation

SWOT ANAYSIS: How NOKIA uses SWOT analysis to determine internal factors and exterior factors.

Strengths: (INTERNAL)

  1. The largest mobile phone vendor undoubtedly, with almost doubles the market share of nearest competition.
  2. The product being user-friendly and have all the accessories one want that's the reason is in great demand rendering it No-1 selling cell phones on the planet.
  3. One of the top 20 brands in the world
  4. The re-sell value of Nokia phones are high in comparison to other company's product

Weakness: (INTERNAL)

  1. The price of the cell phones offered by the company.
  2. The service centers in India are incredibly few when compared with the number of users and for that reason after sales service are not good.
  3. Slow to adopt new ways of thinking

.

Opportunities: (EXTERNAL)

  1. Telecommunication expansion in India coming to the peak time, Nokia comes with an possibility to increase its sales as well as the marketplace share.
  2. Make a significant position in the cdma market.
  3. New growth markets where mobile phone adoption still to come.

Threats: (Alternative)

  1. The threats like growing of other big mobile companies such as Motorola, Sony Eriksson, etc on the market.
  2. The growing demand of WLL network
  3. Late in the access of 3G market.

How Acer uses Porters 5 Forces as an analytical tool to find out strategy and success over its competitors

Threat of substitutes: Acer face that from rival dell who can provide the same goods and value and sell at a much lesser price, as there's a threat from consumer to switch to alternatives, this may force Acer to reduce its product price and income to struggle with other markers

Bargaining ability of suppliers: The exact for suppliers to stores is the fact that is they pay a helpful price because of its supplies, and would not sell to stores if the price quoted was not paid, then your suppliers wouldn't normally sell its goods of them. Since Acer having a market talk about from other company as well as small shop keepers, has an advantage to determine the purchase price the suppliers will be payed for their goods, thus if distributor do not have a tendency to reduce price, it is clear that they would be left with an inferior market share to sell their product.

Power of consumers: Due to a large competition in the electronic digital market industry, it includes forced markets to change to low product cost to be able to catch the attention of more purchasers, thus more electric power favoritism the customers, in order to accomplish more customers and trade with struggle is more victorious to customer preservation, and has also led to increase in gains. And customer wishes lower price and service, better selections.

Threat to new entrants: Because of high market talk about of company like Acer, Dell, Sony which has to led to obstacles for new market segments to enter in competition, since most of these markets lower prices of these goods to be able to win a much better client care, will pay a much minimal which would buy less goods at a better rate. Thus Acer also offers an upper side on economies of scale

How Mc Donald's uses PESTEL as a strategy to overcome issues and gain advantages over its rivals.

Political: All the international businesses of Mc Donald's are according to the insurance policies enforced by the average person governments. On the other hand, the business is manipulated by the individual policies and rules of operations. like any business venture, these McDonald's stores have to contend with the problems of employment methods as well as their tax obligations so as to succeed in the international market.

Economical: Food chains like Mc Donald's do have their individual concerns involving financial factors. Their Branches and franchises hold the tendency to see hardship in circumstances where the economy of the respected states is strike by inflation and changes in the exchange rates. Their problem is determined by the response of the consumers on these basic principles and how it could influence their general sales. Exchange rate fluctuations also play a significant role in the operations of the business. The companies also have to consider the economic standing of the state on which they operate on.

Socio-Cultural: The company improves on building a positive mind-set from other main consumers. McDonald's indulge a particular variety of consumers with certain types of personalities. In 2005 McDonald's has launched a sensibly valued group of food that tenders a reliable level of quality for the particular market where it performs. Techie: McDonald's generates a demand because of their own products. The business's key tool for marketing is by means of television advertisements. The business's marketing is also done through playthings and play locations. The operations of McDonald's have significantly been infused with new technology. Elements like the inventory system and the management of the worthiness chain of the business allows for easy payments for his or her suppliers. The integration of technology in the operations of McDonalds have a tendency to add value to their products.

Legal: The trustworthiness of McDonald's is seemingly a huge matter and with the opposition to the fast food industry Mc Donald's apply a more consideration on the corporate social obligations. The company has provided their customers the relevant data that they want with regards to the nutritional substances with their products. That is to wait to the quarrels of obesity priced against the merchandise of the company. Environment: Mc Donald's employ of non-biodegradable substances for their refreshments spectacles and Styrofoam coffers for the foodstuffs. The social duties of McDonald's on their state are influential to the functions of the business. These entail accusations of environmental harm. (http://ivythesis. typepad. com/term_paper_topics/2009/02/pestle-analysis-of-mcdonalds. html)

Ethics:

Strategic management must ensure ethical ideals i. e. personal worth and fairness. Many of the organisations across the world are not following this and therefore they have to face the situation in the foreseeable future. A committed action to transparency is necessary with better communication and posting of information within the company. Strategic management is also about get together the talk about holders expectation and taking the full probable of the organization. It also will take into consideration the future point of view of the strategy. It also includes an alternative if in case the plan does not work. In a nutshell Strategic management is not a fairly easy task if properly put in place. . ("strategy management" peter Fitzroy/James Hulbert)

STAKEHOLDERS AND ORGANIZATIONAL VALUE:

1. Shareholders: These are one of the critical indicators in micro-environment because they all the main one who had given capital in the company so in order to make their expectation the stakeholders are being received by the short-term and long-term goal in challenging business environment they are one of the important factors of environment.

Conclusion and Advice:

A sound corporate strategy is the best way to ensure for the business to build value for stakeholders and also to unify the business activities to meet up with the organizational target. Successful companies have been through successive incremental strategic changes that were appropriate at that time. Thus it is very important that trade-offs are essential to any successful proper decisions.

Most companies owe their success to the initial strategic position derived from tactical management of behavior, operation and critical & rationally scanning of the business enterprise environment. It enables the company for taking assessment of the current position, assess and plan the near future. Strategy offers a framework for decision making and enables organizations meet up with the requirement of the stakeholders by routine of the available resources. Use of Strategic Analytical tools like few mentioned above empower organizations to take picture of their current place and optimise their resources to attain competitive position.

Businesses cannot find the money for to overlook their environment. All its income, opportunities, perspective, problems are factors of its environment. Strategy can't be formulated with taking into account environmental affects. positive monitoring of the surroundings and incorporating environmentally friendly trends provides the framework for optimizing opportunities and settings of resources to attain the business purpose.

References:

  1. Richard meal, "corporate strategy"4th release, Pearson education ltd. Site no. 2-5.
  2. Peter Fitzry, "strategy management", John wiley & sons ltd. web page no. 40-50
  3. http://ivythesis. typepad. com/term_paper_topics/2009/02/pestle-analysis-of-mcdonalds. html
  4. Adrian palmer & Bob Hartley, "THE BUSINESS ENTERPRISE environment" fifth edition, released by Mc-Graw-Hill Education.
  5. Johnson. G, Scholes. K, and Whittington. R. (2008). Exploring Corporate and business Strategy. 8th ed. London: Prentice Hall. pg7.
  6. Lynch, R. (2009), 'Strategic Management', 5th ed. London, Foot Prentice Hall.
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