Business Strategy

CameronMCameronM Posts: 1subscriber
What do you think of when you hear the words, "Business Strategy"? Do you think of businessmen playing a ruthless game of chess? This is what many people believe. Many people make the assumption that business strategy is something only evil businessmen would know. The assumption that only businessmen know business strategy is horribly wrong. The concept of business strategy is actually quite simple. They concepts reside in five questions:1)What will you business do? (Products or services are providing)2)How are you different from your competitors? (Rivals doing the same thing)3)What's your market? (What is the market of the product your making) (Example: Skin care, oil, auto parts)4)What are you going to do to insure you meet your financial expectations?5)What's your financial forecast? (How much money do you think you'll be making in a few months of opening?)These five concepts make up the theory of business strategy. As any logical person can tell, the theory is not sophisticated. It relies solely on the basis of “what will make the business suceeed”.Without an effective strategy, a company will most certainly fail in under two years of operation. This causes a lot of complaining consisting of the owners saying, “But I had a strategy”. Did you have TWO parts of the strategy? Let’s look at how Wikipedia has defined business strategy or “Strategic Management. “In management theory and practice, a distinction is often made between operational management and strategic management. Operational management is concerned primarily with responses to internal issues such as improving efficiency and controlling costs. Strategic management is concerned primarily with responses to external issues such as in understanding customers' needs and responding to competitive forces. Widely-cited Harvard Business School professor Michael Porter identifies three principles underlying strategic positioning: creating a "unique and valuable position", making trade-offs by choosing "what not to do", and creating "fit" by aligning company activities to with one another to support the chosen strategy. Dr. Vladimir Kvint defines strategy as "a system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully."”If you read through that definition, you read that there is a distinction between operational management-internal business strategy- and strategic management-external business strategy.Recognizing both of these areas can make or break your business. Every company requires a plan that can address an internal or external issues. Companies that fail to design these plans usually fail themselves. As Benjamin Franklin said, “By failing to prepare, you are preparing to fail”

Comments

  • Raheel123Raheel123 Posts: 0subscriber
    Hi all,could anyone recommend a good software program to use to track the prices of products throughout the year.
    Thank you
  • BiziMarketBiziMarket Posts: 0subscriber
    A good business strategy starts with the business you choose to operate. Perhaps the best way to start a small business and develop a business strategy is to purchase a business that is already successfull. If you are interested in buying or selling a small business, check out http://www.bizimarket.com, the online business marketplace.
  • edward222edward222 Posts: 2subscriber
    There are lots of softwares in google. Some are free but mostly they paid softwares.
  • Ankita1234Ankita1234 Posts: 49subscriber Bronze Level Member
    In My word, Business strategy is the work which give me money for what I work for.
  • sysvisassysvisas Posts: 1subscriber
    Business strategies are concerned with the goal of a business activities i.e. what and where they produce.
  • MarTreKMarTreK Posts: 2subscriber
    CameronM wrote:
    The assumption that only businessmen know business strategy is horribly wrong. The concept of business strategy is actually quite simple. They concepts reside in five questions:1)What will you business do? (Products or services are providing)2)How are you different from your competitors? (Rivals doing the same thing)3)What's your market? (What is the market of the product your making) (Example: Skin care, oil, auto parts)4)What are you going to do to insure you meet your financial expectations?5)What's your financial forecast? (How much money do you think you'll be making in a few months of opening?)These five concepts make up the theory of business strategy

    Oh wow! Great post! My opinion, that this is not just about business - the strategy should be in everything you do, so you could obtain better results in every field 8-)
  • marcos26marcos26 Posts: 4subscriber
    When i hear business strategy what comes to my mind is the process in which people analize, develops and see how to sustain financialy their business idea.

    It's really the first step after someone came up with an idea and wants to make it a business in a "safemode".

    Also, poeple that already have a business and want to make a new line of product or service and need funding most investor or banks ask for a business plan. Is common if you have a "sole proprietorship" which in almost avery jurisdiction the earnings of the business go in the same tax form.
  • ankit007ankit007 Posts: 254subscriber Silver Level Member
    A business strategy is the methods by which it embarks to accomplish its sought finishes (destinations). It can essentially be depicted as a long haul business arranging. Regularly a business system will cover a time of around 3-5 years (now and then significantly more).
  • dodolatozdodolatoz Posts: 8subscriber Member
    Various problems come up that make us lose direction will the business targets we have set. But that does not mean there is nothing we can do to promote and develop the business. In business, a strategy is very important. Because the business strategy is the key to success that will help us in many ways.
    read this article about the importance of developing business strategy http://8thinktank.com/business/key-to-success-the-importance-of-developing-a-business-strategy/
  • Mikehills101Mikehills101 USAPosts: 5subscriber Member
    What comes up in my head when I talk about business strategy is what you CAN DO and WILL DO to make your business successful.
  • charucharu Posts: 27subscriber Bronze Level Member
    Well in my opinion, a business strategy should be designed and implemented with a proper planning so that we get maximum output with minimum input. Profit and productivity comes to my mind when i hear this word.
  • m.milliganm.milligan Posts: 9subscriber Member
    Strategy encompasses everything you do for your business. 
    Marketing- Do you have a planned out system or just worry about it when you are slow?
    KPIs - Do you know what your targets are for the work you are performing to know if you are profitable?

    these are two simple things that should be addressed in any strategy. Just for starters.
  • FrankLeeFrankLee Posts: 18subscriber Bronze Level Member
    You know, we can apply the definition of strategy globally to every sphere of our life. I used to make up my own strategy of investing in Bitcoin because it is really a very huge topic. I'm not optimistic about fast progress in UX for blockchains because there are too many unknowns, so necessary experimentation must happen first, for many months (years). I'd implement an eldergame that allows cheating for the purpose of challenging the other players to spot the cheat, and I'd report on that. You`d better read more about the topic and first of all about private blockchain if you want to earn money in that field
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