Business Strategies
The strategies which are performed by a business which helps in accomplishing the business goals and to obtain a ruthless position in the market is known as business strategy. It can be also said that business strategy is a combination of all the decisions taken and the actions which are performed by the business to reach the goals to compete with other businesses. The business strategy is the backbone of the business as it is the road map which leads to the desired goals. If there are any faults in the designed instructions then the business can result in getting lost in the crowd of enormous competitors. Another important word which we generally hear in terms of business is the business model. It is a conceptual structure which experiences how the company operates by making money and also how it achieves its goals and objectives.Business plan explains the goals where the business strategies gives an outline of the road map that how that business can achieve them. When someone plans to launch a business in the market, then he or she decides an objective to be executed in the business. The business strategy answers all the questions of how and why to fulfil the objectives. The key components which are useful for a business strategy are mission objective and vision. A business should have a vision and direction to the business with perfect and clear instructions on what it needs to be done and how it’s to be done. Some are also given responsibility for doing it.
Importance
Without an objective in a business is just impossible. Entering into the market without a well-planned strategy is no less than taking a risk. Now as the competition in the market has increased, so the necessity of having a business strategy is now a useful thing. Nowadays in this increase in competition in the market, the types of business strategies to be used has also increased. The five reasons which shows the necessity of these strategies in our business are –
- Strengths and Weaknesses – Sometimes we get to know about The real strength and weaknesses while we are making a strategy. This helps us tTo turn an account that how much good I am and how to eliminate all my weaknesses
- Efficiency and Effectiveness – When all the resources are present and when all the steps are planned and when we all know what is to be done so our business activities become more easy and effective automatically.
- Planning – As first described, to execute a business A business plan is very important. The business plan is the only method which helps us in fulfilling the goals and objectives of a business and the business strategies gives us a road or a way to fulfill the goals.
- Control – One of the importance of business strategy is control, which helps us to decide the path which is to be followed and the goals which are achieved. So this is very important as it helps all. It makes the work easy to control the activities and also what is going to be done.
- Competitive advantage to bring a business in this competitive market, The business strategy is very important as it focuses on capitalising the strength of the business. So by this the competitive advantage has increased which keeps the brand in a unique way. This also gives an identity to the business and makes it unique in the eyes of the customers.
Levels of Business Strategy
The goals of the business are achieved by nicely executive the different business strategies.It has been seen that all the employees, partners and the stakeholders of the business have an intention to fulfil the business objective. The activities which they do by using many different business strategies in order to their levels is very important for the business on which they are working.
Generally we see that business strategies are classified into three levels namely the corporate level, the business unit level and the functional level. the corporate level is the highest level of the business strategy. it is a part of the business plan which makes the guidelines of what is to be achieved and how can it be achieved. this is the level of the business which sets the objective for everyone. Now the business unit level is that you need specific strategy which is different for different units of the business. these units can we various products which has totally different operations. It makes strategiesSo that they can differentiate themselves from the competitors by using different competitive strategies.These strategies align the objectives with the overall business objectives which are said by the corporate level strategy. The functional level strategy is that part of the level which sets many different departments of the unit. The departments are present but are not limited to the sales, finance, marketing, operations, CRM etc. These are limited to the day to day actions and decisions which are needed to deliver The unit level and the corporate level strategies. it also maintains the relationship between many different departments and also it fulfils the functional goals.
