It is a fact that organization's strategy gives us an idea about what the organization wants to achieve and the process how they want to achieve it. It basically includes the purpose of the entire organization, its goals and objectives as well as the plans and methods that they are considering so that they can achieve this. A strategy also involves the determination of the entire basic long term goals as well as objectives of the organization. At the same time, it adopts the courses of action that is necessary and the allocation of all the resources needed to achieve the goals. And then, here comes business strategy.
A business strategy is a report that shows the plans of the entire business. It is a plan that is often used so that they can attract financing from big investors as well as creditors. This is a plan designed to give information regarding a new venture so that they can convince financial backers to invest in the said business. It describes the market opportunities that the business intends to develop, the process on how they are going to do it and the resources that are required to make it possible.
Business strategies demonstrate the following roles:
1. It is applied to encourage people to invest in an enterprise.
2. It is also a tool used to assure creditors about the credit worthiness of the enterprise.
3. Another role is to persuade banks to lend or perhaps invest money.
4. Last, but not least, business strategy helps you stay focused on what's important for your business in order to achieve your desired results. It saves your time, energy and money.
And since this is necessary, a strategy needs to:
- Show the lender or the investor that they have a big chance of being repaid and that they will be getting good returns on their investment.
- Build the necessary confidence for the firm and the capabilities of the owner.
- Show the investors that there is a very good market for the service or product that you offer.
- Show you a clear picture where you're heading and how to get there.
There are basically three types of strategies in which business holders must concern themselves:
1. The plain strategy or the strategy in general. This refers to how a specific objective will be achieved. The strategy in general mainly concerns the relationship between the results we want to have and the resources that are currently at our disposal.
2. Next is the corporate strategy which defines the market and the business wherein a certain company will operate. Corporate strategy is usually decided through the context of being able to define the company's mission and vision. This is the same as being able to recognize what the company does, why it exists in the first place and what it intends to become in the future.
3. The last type is the competitive strategy which describes a given business the basic that is needed for it to be able to compete. This type of strategy is centered on the company's capabilities, its strengths and weaknesses. This is used in relation to the market characteristics as well as the corresponding abilities, strong points and weaknesses of the competitors.
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