Why Is Strategy Important to Business?

In: Business and Management

Submitted By michjohnson
Words 453
Pages 2
Michelle Johnson
MT460: Management Policy and Strategy
Unit 2 Project: Why is strategy important to business?
Kaplan University
August 16, 2011

Strategy is important in business because it gets all the things that you want to do, so you'll be able to go through them quickly and productively. This will also help your competition doubt their own strategy. One example that I have heard of is think of a football game without strategy. Who will know what they need to do if you don't have some type of organization of the system you are trying to run. It is also important to a business to have some type of base plan for any business that effects its revenue, expenses and profits. It provides a long term direction to the organization and it helps the organization achieve a competitive advantage. It will also tell about the business in the market, values and the way that they may handle resources in order to meet the objectives of the company as a whole. One of the main things that it helps to do is helps to analyze the internal and external environment.
Something to remember is that without strategy the company would be pretty much shooting in the dark. Would something work ? This would be a continuing question without some type of direction. It allows the business leaders to weigh the pros and cons of different decisions in order to get to the proper way to go. Taking into mind the most cost effective process that will be needed.
Strategic management is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives. It comprises nine critical tasks:
1. Formulate the company’s mission, including broad statements about its purpose, philosophy, and goals.
2. Conduct an analysis that reflects the company’s internal conditions and capabilities.
3. Assess the company’s external…...

Similar Documents

Why Is Strategy Important to Business

...eliminate the use of the venders in Socotra and reduce the transportation cost as well as any tariffs that South Africa might have with Socotra. Also one more thing they can do is try and grow the other five ingredients that is used to make Zip-6. It is also possibly that they can find different ingredients that are grown native to South Africa that can improve the quality of their product. Every country has their good qualities and bad qualities. It is up to the business to decide the best strategy for them to take when entering a new country. It is always a good idea to have a plan A and a plan B just in case if plan A does not work. For example according to Ravi South Africa has a relatively heavy tax on business profits and an additional tax on dividends and Japanese government resists both FDI and acquisitions by foreign firms and existing Japanese bottlers are financially strong and protected by government regulations. Every country has their laws and regulations so this is why it is important for a company to develop relationships with other businesses in the country they want to expand in. As CEO I would like to see Zip-6 use acquisition to expand into South Africa. By doing this they are able to merge with an existing company that is already recognized in South Africa. Even though South Africa is a developing country the FDI grew in 2011. Zip-6 can start establishing their name in South Africa before other investors come in and steal possible......

Words: 770 - Pages: 4

Why Is Environmental Scanning Important?

...Why Is Environmental Scanning Important? All organizations need to monitor at some level what goes on in their environments and recognize their strengths and weaknesses in relation to it. The importance of environmental information depends on the degree to which the success of the organization itself depends on its environment. In the business literature, this dependency of the organization on its environment is referred to as perceived environmental uncertainty (PEU). Gordon and Narayanan (1984) identified factors that determine PEU. These factors include the nature of the society, economic stability, legal stability, political constraints, the nature of the industry, the customer base and the nature of the organization. While PEU varies from industry to industry, the level of recognition of the importance of the environment also varies from company to company, as does the reaction of companies to their environment. Khandwalla (1977) identifies three possible relationships between organizations and their environments: Dominant organization/dominated environment Dominant environment/dominated organization Symbiotic relationship – neither the environment nor the company dominates. The relationship between an organization and its environment depends upon the internal strengths and weaknesses of the company, which means that an opportunity for one company will be viewed as a threat to another company, depending on how well each is positioned to......

Words: 1079 - Pages: 5

Why Is Strategy Important to Business?

...Why is strategy important to business? To elaborate on the information I used in my journal entry, I believe one of the main benefits of strategic management is one company would have an advantage; they would be able to increase their market shares and grain profits over other companies. As well as have a greater ability to avoid problem in the long run with assuring that those people with issues regarding adapting to changes have a smoother transition. And lastly all of the members of the team will have clear understanding on what the mission is as well as what part they have to play thus eliminating any crossover in activities. (Pearce, Robinson 2011) However, before upper management move forward with strategic management they should weight all of the pros and cons. This method of looking at the hold picture from start to finish, the good as well as the bad, will ensure a smoother flow within the project. A disadvantage of this would be that a lot of the companies allocated resources like people, money and time just to name a few, would have to be utilized leaving other parts of the business with little activity. Another would be that the primary strategists involved in this project have to stay engaged every step of the way, if not the project runs the risk of being delayed because they may start to neglect their part of the project thus holding up everyone else. (Pearce, Robinson 2011) Some of the main components of the strategic management process would be the...

Words: 561 - Pages: 3

Why Marketing Is Important

...“Marketing is the activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners and society at large”(AMA, 2007). So, why it is so important to create value for all of those persons above? And what the reason could be to do so for entrepreneurs? Let’s try to find some answers. When we speak about founding new business we used to think about business planning to have an idea how we should grow up, then we think about our strategy. Would it be low cost leadership, or differentiation or focus strategy? But when we should start to think how we plan to sell our products or services, who will buy it and what exactly those buyer want to get? Usually we should start to thinking about our business from asking questions like two above. When we cannot answer them our entrepreneur seems to be failed, because every successful Entrepreneur is able to name his customer and their needs. Marketing Plan include important part – Target audience, which describe ages, gender, lifestyle, location, income and other parts which should characterize potential customer. Businessman should know what his customer doing, how he or she get to the job, how spend its free time and etc. By answering those question Entrepreneur could pointed out his consumer and even more, call his name. Dr. Phillip Kotler says “marketing identifies unfulfilled needs and desires” (Philip Kotler, 2012). How future......

Words: 955 - Pages: 4

Why Is a Business Plan Important

...A business plan is defined as “a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).” (McHugh J., McHugh S., Nickels W., 2010) A business plan is important to potential business owners for quite a few reasons. First off, it ensures that a new business owner is very specific in the details of the business they intend on starting. Anyone can come up with an idea, but without the planning and solid foundation the business will crumble. Writing a business plan makes the new owner think about all those details that often get skipped over, the ones that are not necessarily fun, but absolutely necessary. It keeps your business on a clear course. Without spelling out these things, you could hit rocky times when questions come up about how the financing is handled, how the management structure works, etc. You should forecast marketing strategies, things like what location would be best for your product, who your target customers are, how to appeal to them, and what your company’s goals are. Additionally, when you are looking for startup funds, investors and lenders are going to require a business plan. If you plan on selling your business at any point, or should you need to, the business plan is very important for helping buyers understanding what your companies goals are, and the strategy with which you plan to attain them. It is clear,......

Words: 269 - Pages: 2

Why Is Consumer Feedback Important

...Is Customer Feedback Important? Customer Satisfaction is a huge goal of a company because it results in the customer returning to get the same product again due to their satisfaction the first time. For this reason, businesses should put high priority on how satisfying the experience was for the customer. Brian Gilbert and Shallon Thomas, quality engineers at Engility Corporation, state in their article that a business, that studies and enforces customer satisfaction enables that business to outperform their competition. Providing a good customer experience poses some complex problems for larger companies because they have a much larger customer base to please, thus causing more negative experiences and reviews. Technology has made customer experience a very important aspect of business because of how easy it is for consumers to gather information on a specific service or product. Michael Luca, a student at Harvard’s Business School, states, “With the click of a button, one can now acquire information from countless other consumers about products ranging from restaurants to movies to physicians” (Luca 1). Today’s tech and devices have allowed customer reviews and feedback of a product to reach many more people than just friends and family. Technology also invites the possibility to ruin the reputation of a business or increase its popularity. Luca has investigated how a company’s revenue is affected by ratings on Yelp.com. He claims that “…a one star increase leads to...

Words: 1209 - Pages: 5

Why Is Finance Important to a Business?

...Why is Finance so Important to a business? Finance is a crucial part of a start-up business; it is the cornerstone to determine whether or not your business will jump over the first hurdle. Without sufficient finance, a business has a very low risk of surviving the first stage of development. Finance can be important for various activities throughout the business starting with the purchasing of stock. If you are providing a product you will most likely need raw materials, if not then you will need general stock. Having more expensive, higher quality stock will push you to a competitive advantage. (Chron, 2013, Electronic Source.) Finance allows you to buy in order to sell and hopefully make a profit on those goods. If you are providing a service then finance will allow you to buy tools or equipment to improve your service. Start- up businesses might not necessarily have anyone other than the entrepreneur working, however if you have employees then finance will help pay their wages. In U.K. you pay business tax on your business profits, the amount of tax you pay depends on how much profit you generate. Finance is important to be able to pay these and calculate how much you owe to the government. Not having the sufficient finance will reduce the chances of the business accepting negotiations, therefore restricting the business in terms of growth (Chron, 2013, Electronic Source). Business finance is spent on two types of expenditure, capital and revenue. Capital expenditure is......

Words: 2159 - Pages: 9

Why College Is Important

...Assignment 1 “Why college education is important to me” Achieving Academic Excellence February 6th, 2014 The purpose of this essay is to show the importance of a college education and to provide many reasons why a college education would be important to me. I will incorporate a few quoted references along with some statistical data and my personal opinion. About twenty years ago I couldn’t give an answer to “why college is important to me”. I did enroll in a college and lasted about three semesters. I didn’t do well in many of my classes because I had poor study habits, lacked maturity, was never really focused, and just didn’t have any real motivation and goals set for myself. I never really gave it much thought. The point is I just didn’t take advantage of what college would mean to me and to my future. I wanted to enter the work force right away because I thought that I could land a good job without a college education. After fifteen years of doing different jobs and not making enough money to support a family on my own, I was finally at a crossroads. What am I going to do with my life? Do I continue to struggle? Those were really good questions. I realized that it wasn’t possible to land good jobs without better knowledge and the only way possible is to go back to school. I did some soul searching and came to the conclusion that if I am going to achieve something in this life and qualify for many positions then I must go back to college and work very hard for a......

Words: 792 - Pages: 4

Why a Business Plan Is Important

...George M. Diuguid Assignment 1 American Military University Having a plan, or a strategy when starting a business is essential. There are several different ways to plan or organize the steps necessary in the process. A business plan is the most commonly utilized tool for planning and organizing a new venture. Technology has allowed tools like Google Calendar to provide many benefits in regards to organizing for small businesses. A business brief allows business owners to focus on certain aspects of a business without the confusion of everything else getting in the way. These are just a few of the ways to help organize and plan a new venture, but each has its own unique benefits. Perhaps the most common way to plan and organize for a small business is by developing a business plan. Planning is one of the most important parts of running a business, no matter whether it is a large multinational corporation trying to plan an expansion or a small business launching an exciting new product (Topfer, 2011). This plan can be used as a guideline and benchmark for any business including small businesses. The business plan will outline virtually every key aspect of a business, from operational organization, market analysis, and even finances. Having a written plan in place will surely help in organizing and planning for a new venture. Another way to help organize a business, and help with planning would be to utilize a functional calendar such as Google Calendar or......

Words: 544 - Pages: 3

Why Is It Important

...bsb  Camp Casey Korea why is it important to follow orders Donald Fletcher bravo company 302d bsb  Camp Casey Korea why is it important to follow orders There are many reasons why a soldier should follow all of the orders they are given because every one of them is important in any circumstance. An order is a task given to a soldier that has to be done in a certain period of time in an efficient manner. There are three main reasons of why it’s important for a soldier to follow the orders they are given: To be disciplined, an effective combat, and be a good soldier and love your job. When a soldier doesn’t follow the orders they were given it doesn’t only affect them it affects everyone in the team and the goals they have set for the mission. When soldiers don’t follow the orders, the objectives are hurt and the chances of winning the war. When you’re in the army you need to stop and think if it will harm you or your battle buddies. When a soldier doesn’t follow orders while in combat zone it makes the mission ineffective, if a single soldier in the unit is combat ineffective it lowers the chances of winning, making the leaders deal with a soldier that can’t handle the workload of the unit. For example if Sergeant tells a private to prepare the guns before they go out for the mission the sergeant is telling the private to get the guns ready so they can be fully functional and help out when its needed in the fight. It doesn’t matter if the private doesn’t know why he had......

Words: 1435 - Pages: 6

Why Strategy Important for a Business

...Strategy is important to a business because strategy describes where you want the company to go. Strategic planning helps with getting the company to where you want it to go. Strategic planning is defined as the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives (Pearce & Robinson, 2013). Without knowing the strategy of the business the details on how to get where you are headed cannot be made. Strategic management is a three-tier process involving corporate-, business-, and functional-level planners, and support personnel. At each progressively lower level, strategic activities were shown to be more specific, narrow, short-term, and action oriented, with lower risks but fewer opportunities for dramatic impact (Pearce & Robinson, 2013). Strategic decisions are based on what managers forecast rather than what they know. These decisions are developed on projections and it will enable the business to select the most promising strategic options (Pearce & Robinson, 2013). An organization’s mission identifies the scope of its operation (Pearce & Robinson, 2013). The mission statement of a company must express how the company will contribute to society as well as its product and market. It should also list the company’s purpose, philosophy, and goal (Pearce & Robinson, 2013). The strategic planning should be on the same path as the company’s mission. The strategic process is......

Words: 299 - Pages: 2

Why Marketing Strategy Is Considered as an Important Aspect to an Organization's Success

...Title: “Why marketing strategy is considered as an important aspect to an organisation’s success” As we know that a successful company depends on the cooperation of functional areas. The examples of functional areas of the organization are accounting and finance, human resource, administration and marketing, etc. However, today’s successful companies depend on marketing which is mainly focusing on creation and retention of customer value (Jobber 2010). For example, Zappos is one of the successful companies in today because of their powerful marketing strategy which mainly take good care of their customers in term of understanding what their customers’ wants and needs; then creating customer value in order to fulfil their customers’ satisfactions (Armstrong 2011). Therefore, here we are going to explain why the marketing strategy can become an important aspect to an organization’s success nowadays. In the old concept, marketing is defined as the task of creating, promoting and delivering goods and services to customers (Kolter 2003). In the new concept, marketing means managing profitable customers’ relationships then only building brand awareness and positioning the brand as customers’ best choice which is more related to the relationship marketing (Ambassador n.d.). Actually, marketing is more than just persuading consumers while it focus on how to attract new customers by promising superior value and also how to retain current customers by delivering higher......

Words: 1163 - Pages: 5

What Is Strategy and Why Is It Important

...Chapter 1 What Is Strategy and Why Is It Important? Multiple Choice Questions What Do We Mean By “Strategy?” 1. Which of the following is not one of the central questions in evaluating a company’s business prospects? A) What is the company’s present situation? B) What are the key product or service attributes demanded by consumers? C) Where does the company need to go from here? D) How should it get there? E) All of the above are pertinent in evaluating a company’s business prospects. Answer: B Page: 5 Learning Objective: 1 Difficulty: Easy Taxonomy: Knowledge AACSB: Value Creation 2. A company's strategy concerns A) its market focus and plans for offering a more appealing product than rivals. B) how it plans to make money in its chosen business. C) management’s action plan for running the business and conducting operations—its commitment to pursue a particular set of actions in growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives. D) the long-term direction that management believes the company should pursue. E) whether it is employing an aggressive offense to gain market share or a conservative defense to protect its market position. Answer: C Page: 6 Learning Objective: 1 ...

Words: 6699 - Pages: 27

Why Is English Is so Important

...Why English is important IF YOU are currently learning English in a school, college or institute of further education, you join approximately one billion other people around the world who are engaged in the same pursuit. However, as you try to memorise proper grammar, and try to avoid the mistakes common to most students of English, you may wonder why you are learning the language in the first place. So, why is English important? After Mandarin, English is spoken by more people than any other language, and is the native language of more than 350 million people. More people speak English than those who speak the Arabic and French languages combined. Moreover, English is the international language of diplomacy, business, science, technology, banking, computing, medicine, aviation, UN & NATO armed forces, engineering, tourism, Hollywood films and arguably the best pop and rock music in the world. English has plenty of words to choose from. In fact, an English speaker is offered the biggest vocabulary of any language with a choice of 500,000 to 1,000,000 words (including technical and scientific terms). But don’t panic, most English speakers do very well with a vocabulary of around 20,000 words. English can be fun too. For instance, the music of such stars as Elvis Presley, The Beatles, Led Zeppelin, Michael Jackson and Madonna has encouraged fans to speak the language of their idols, whilst others have enrolled in English classes to improve their......

Words: 378 - Pages: 2

Why Is Strategy Important to Business

...Unit Two Assignment – Why is Strategy Important to Business? John Rapier Kaplan University School of Business and Management MT460-01 Management Policy and Strategy Dr. Carrie A. O’Hare July 11, 2012 Unit Two Assignment – Why is Strategy Important to Business? While it could be argued that as students while we may not view the path we are following as a strategy, in truth we are, even if we haven’t codified it as such and if asked if we were ever involved strategic planning, may very well say no. In reality though we have, even though it may not be on a grand scale, it is the plan for our direction and future. This action is at the core of strategic management and strategy. It is this planning for the future of a business, its growth, development and direction which are the very core of growing a successful business over time, just as the selections we make for ourselves will determine our direction in the future and indeed contribute to our eventual development and success. What is Strategic Management? Although a variety of considerations are involved in Strategic Management, it can be summed up simply as preparing for the future and following a planned path to a goal rather than leaving things to chance and just taking things as they come. Strategic Management provides a comprehensive picture of where a company is, what it hopes to achieve and how it is going to reach its goals. Before we can make plans for the future, we......

Words: 957 - Pages: 4