Business Strategy Vs Planned Strategy

In modern economic system and business environment, having a correct business strategy directly influence the efficiency and the future of the firm. Most of leaders of a company runs their business with a planned strategy with predicting trend of demand, flow of resources allocation and long term aggregate planning. But in most of cases, it had been proven that the real world situation is normally different from what we planned. Modern customer’s behavior becoming harder and harder to predict due to the varieties of the products. New resources are keep appearing to replace the old one and new technology changes the operation model of customers and company. Therefore, firm leaders bring up a new idea to run their business with emergent strategy.

It is a strategy a firm set up base on external environment and internal resources condition to control and influence its managing strategy in different section in an aggregate view of planning, which include production management, marketing management, financial management and human resources management. Normally a planned strategy will influence a firm’s operation model in a period of 5 to 10 years. But it is a completely fixed pattern. It will change bases on the variation of the firm’s external environment and internal resources condition. It is an overall structure strategy for a business. Planned strategy in most of firm plays a very important role. It act as the spirit of the firm’s marketing and promotional strategy through scientific, restrict and feasible researches. And practically follow the planned strategies to achieve ultimate goal- earn profit for its shareholders. Meanwhile, creating a good company reputation to maintain its long term growth and survival of the firm in cruel business competition. In detail, it influence the firm mainly in 4 ways. First, it helps to coordinate the firm’s business activities by synchronize concepts and basic steps during, financing, resource allocation, production and promotion process between different departments. Allow them to share the same vision in order improve the efficiency of using internal resources. Second, allow the decision maker

Neither it has go through a very complicate decision making nor is it very planned for a long term period of time. It is to draw up a strategy from the previous successful cases done by the company. Basically, it just replicas the successful mission in the company’s history with reasonable and traceable working procedure. And assign the same business model to different departments in the firm. In real operation, many successful strategy is obtain from the previous practical experiences within its departments. The new strategy is sat up by the summary obtain from conducting endless researches with countless failure. This type of trial and error style is fundamentally base on luck. It may bring a completely new competitive strategy to the firm. And once the old method go through renovation, formalization and confirmed as feasible. The leader of the firm can only distribute its concept from the bottom level of the company to its managing level. But this process take a longer time and meanwhile a new strategy might generated and ready to replace the old existing yet 100% on track strategy. In other word, for emergent strategy is mostly contain of random and trail factories. The only difference is when a better strategy has high percentage of actual feasibility. In real, this strategy works quite well with new set up firms instead of existing large firms. For newly sat up firms, sometimes not having