Managers must be conscious about the markets, supplies, investors, locations, partners, and competitors across the globe. Successful businesses will take advantage of opportunities available to them. However Management needs to understand the similarities and differences across national boundaries, in order to utilize the opportunities and to deal with it. Global strategy is the competitive technique designed to help companies operate and compete effectively across national boundaries. Therefore it requires careful strategy formulation at various levels as per culture, tradition and norms of different countries to compete
Business Planning The need to plan the activities of the company stems from the environment and its dynamics. The concept of business planning has its own evolutionary development. It has passed through many stages. Also more features that make up the nature of business planning can be emphasized. Above all, it is a mental activity of the managers, activity of thinking about the enterprise development.
Understanding Business Strategies and Corporate Strategies. In every business, whether it is big or small, there will be two strategies that must be implemented at one stage of its existence in the business world. These strategies are known as Business and Corporate Strategies. The Business Strategy is made up of completely different things compared to the Corporate Strategy. A small business working or producing in a single industry must develop a competitive advantage if it is to be profitable you can gain competitive advantage by outperforming your competition in some aspect of business to produce your goods or services at a lower cost.
After setting the objectives with maximum clarity, the firm must also prescribe their hierarchy /priorities. 6. Formulating the corporate strategy: The effectiveness of the entire strategic planning process is tested and proved by the effectiveness of the corporate strategy it chalks out. The main objectives of corporate strategy are to provide strategic direction to the firm. It is corporate strategy that ensures the fit between the firm and its environment.
The purpose of strategy is to determine and communicate a picture of enterprise through a system of major objectives and policies. 2) Unified direction: Strategy is concerned with providing a unified direction and efficient allocation of an organization’s resources. A well-made strategy guides managerial action and thought. It provides an integrated approach for the organization and helps in meeting the challenges arising out of environmental factors. 3) Contradictory actions: Due to dependence on environmental variables, strategy may involve a contradictory action.
1. Unit 1 1.1 Objectives of this unit • Explain business policy and strategic management basics • Understand the importance of business policy and its implementation • Differentiate between goals and objectives of the organization • Understand the basics of strategic planning • Understand importance of business ethics and CSR activities • Understand basics of strategy management 1.2 Business policy – Introduction to business policy In earlier days, when a person or a group of people were starting something of their own to generate income, it was considered as a business. With the passage of time, this definition has been modified. With increasing population, the business has also increased itself. Now business is handled by organizations instead of persons.
This helps in using employees’ diverse experiences and ideas to improve business. For example, a manager holds brainstorming session with his/her team members before launching a new projects. Leaders Improve Employee-organisation Relationship: An effective relationship between a leader and the employees in an organisation validates that employees are considered valuable and integral to the organisation. For example, a manager gives due credit totem members who have put in extra efforts in a
Strategy defined as "the art of devising or employing plans or stratagems toward a goal" (Merriam-Webster online, 2007). It is a plan of actions to achieve long-term goals. At any organization, there are three main levels of strategy; Corporate Strategy, Business Strategy and Functional Strategy as in figure1. Figure2 shows an example of my organization with three strategies levels. Figure 1:
It can help businesses to compete in the market. Therefore we can see business strategy is important aspect for a business. Business model and business strategy is need to help business to see clear picture of their business. As we know, teaching of Islam is comprehensive towards all people. Islam encourage Muslim to do business in order to support their daily life.