“Strategy is the direction an scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging business environment, to meet the needs of markets and to fulfil stakeholder expectations.”
Business strategy is the only driving force behind any successful business since it builds the foundation for the same. The business strategy is not just 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 and the best one among them must be chosen which can fulfil the needs of the organisation and emends of a rapidly changing world for revolutionary business strategies. It must also be able to handle the internal pressure of the organisation when the plan is being executed.
- How can the business perform better than the competition in those markets? (Advantage)
- What external, environmental factors affect the businesses’ ability to compete? (Environment)
- Where is the business trying to get to in the long-term (direction?)
- What resources (skills, assets, finance, relationships, technical competence, and facilities) are required in order to be able to compete? (Resources)
- Which markets should a business compete in and what kind of activities is involved in such markets? (Markets; scope)
- Strategy at Different Levels of a Business?
- What are the values and expectations of those who have power in and around the business? (Stakeholders)
Definition of business environment:
“Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations”. http://tutor2u.net/business/strategy/what_is_strategy.htm
Why study the business environment:
In each and every organisation there is some relation with business environment, each and every type of business is surrounded with environment directly or indirectly. Business environment is surrounding with its customers and stakeholders and it have of political as well as legal forces this all together makes business environment, in order to achieve profit and also to fulfil the stakeholder expectation a business has to change its environment as per market need. The organisation which understood the business environment and make necessary changes according to the environment succeed in business in terms of profit and needs of stake holders. On the hand the business which does not changes according to the environment leads to failure of the business, so for each and every organisation business environment, Is really important.
Different level of business strategy:
In each and every organisation strategy is used at different levels of company among them the following is the modern levels strategy is being employed by organisatation.
This strategy is considered and completely influence by stakeholder needs. At this level fundamental decision about future direction of an organisation with the purpose to fulfil the needs of stakeholders at this level strategy is done by considering the stakeholders because they are the only one who invest in the organisation so the corporate strategy is or related stakeholder expectations
Business unit strategy:
This levels of strategy is completely focused on how a business competes in a particular targeted market, it concerns strategic decision in relation to product, meeting needs of the customers , taking benefit over competitor and employing strategy related to business operation and creating new opportunities for business. This is the only level which directly influences with the customers in respect to corporate strategy.