Business strategy

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Business strategy

Business Strategy of any company , like Able Corporation , determines how the goals of the company , be it be short term or long term , be achieved It formulation for any company brings upon four different important factors Product development , Market penetration , Market development and diversification . All these four factors can be further segregated upon their implications to the long term or short term goals

In Able Corporation quest to foray into new business development , they need to engage in Strategic Business

Management . Strategic Management has been famously defined as Strategic management is an ongoing process that assesses the business and the industries in which the company is involved assesses its competitors and sets goals and strategies to meet all existing and potential competitors (Lamb 1984 ) This was again backed by the author when he stated and then reassesses each strategy annually or quarterly [i .e . regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances , new technology , new competitors , a new economic environment , or a new social , financial , or political environment (Lamb , 1984

First the company needs to do a strategy formulation which would include , developing a mission statement , operating principles competitor analysis , internal external environment analysis including macro and micro , SWOT analysis , other market threats like changes in technology , change in government outlook for environment pollution standards , set financial goals for six months to one year to five to ten year long term plan . These plans are to be forwarded to Strategic Officers Steering Committee (SOS-C ) of Able Corporation

Able Corporation needs to make a mission statement to make both employees and clients aware of the goals of the company . Mission Statement ' often defines the company 's reason for existence and its purpose in world . Take for example Google known for its search engine has a mission statement Organize the world 's information and make it universally accessible and useful (Google , 2007 ) Here it Google has not only defined itself as what it search engine does but also what it means to the outside world , and presents itself to be accessible and useful to others

It needs to set its operating principles , like maximizing profit , timely delivery of goods and services , respect customers opinion and advice Effective H .R . policies to retain employees in this world of high turn over rate of employees , constant quality and technology upgrade through able research and development . Profit Maximizing can be found out by Method ) or Marginal Cost or Marginal Revenue method , which includes raw goods procurement policy , reduced lag time between production and delivery thereby reducing storage costs . Introducing effective H .R policy will eventually reduce training and employment costs . In today 's world where high turn over rates , high employment costs , selective outsourcing of services like after sales service can reduce costs keeping in mind not to effect customers perception of the company . The company has to look into competitor...