business strategies definition
business strategies definition - the art of the General (in Greek), is the optimal way to the goal. Strategic management - a branch of science management, providing head of the methods and skills:
•development of optimal ways to achieve the goals of the company;
•professional and personal growth.
Strategic marketing - marketing, the objectives of which include the examination and determination of all operating and perspective of internal and external factors affecting the activity of the company, the long-term perspective directions of activity.
business strategies definition of Strategic marketing planning is the creation and maintenance of the necessary consistency between the objectives of the company and its opportunities in the market, based on a coherent and rational pursuit of ideology of the company, perform support the goals and objectives, following the growth strategy.
In its work, David A. Ààêåð defines six elements (or areas) of business strategy, which is sometimes called competitive strategy or just strategy. The first four of them are applicable to virtually any business, while the remaining two are suitable only for organizations, consisting of several business units (business segments). Development of the strategy implies the identification of the following aspects of the business.
1. The commodity market, which will compete business. Business scope is determined by:
•products (goods or services), which the company plans to offer on the market and from which she refuses;
•markets, which it plans to cover or from which suggests to refuse;
•competitors, the which the company will compete against conflicts with which it is attempting to escape;
•level of vertical integration.
As a rule, the choice of the sphere of business, the operating company comes from the established practice (once it exists, then, is something involved). But no one company is not prohibited by the opening of new product lines.
Sometimes the market is selected according to the principle «on the contrary» the company determines the scope, from which it is better to refuse, because such solutions allow her to save resources and to achieve success in other markets.
2. The level of investment. The company determines the approaches to investment in the business in accordance with the following conceptual approaches (the most common options):
•investments in growth (or the entrance on the market of products);
•investment in the strengthening (or withholding) occupied positions;
•operation («milking») of the business by minimizing investment;
•return the maximum possible amount of assets for the liquidation or for divestment (sale) of the business.
3. Functional strategies needed to compete in the selected product market. The specific way of competition is usually characterized by one or several functional strategies, for example:
•the product (goods or services) strategy;
•communication strategy;
•pricing strategy;
•strategy of distribution;
•the production development strategy;
•information strategy;
•strategy of segmentation;
•the global strategy.
As we can see, the above functional strategy have given the specific focus. However, it should be borne in mind the most important thing: you can't say (and implement): «We use a commercial strategy.» The working strategy should be very balanced. If the company chooses to any one type or complex of functional strategies, managers of the company must understand what it is (goals, decisions, actions, forecasts, etc.) they are, otherwise attempt to strategic management will be meaningless.
4. Sustainable competitive advantages (PPC) strategic assets or competence, which are based on business strategy.
•strategic competence is strategically important for the business units to certain directions of activity in which it is most strong (for example, for a Bank - mortgage lending or formation of reputation of the company).
•under the strategic assets are some resources (for example, for a service company - the presence of a brand or a pool of loyal consumers)that exceed parameters of the similar resources of competitors.
In the process of formulation of a strategy for this component of the need to consider the costs and technical possibilities of the creation or maintenance of assets and/or competences that constitute the basis of the training.
The following two elements of business strategy inherent in organizations using the so-called strategy the corporate center (that is, a strategy that can be applied to multi-discipline companies with the purpose of creation of corporate benefits in addition to competitive advantage, ensured by the strategies of each of the business units). The strategy of the corporate center are popular in international management and marketing since the 60-ies of the last century. Many prominent authors (Àíñîôô, porter, etc.) devoted their works of development and detailed analysis of methods of management of the corporate center. However, years of practice have shown very limited solvency of the application of such strategies. The result of the above studies of the scientists of Ýøðèäñêîãî center of strategic management has been the recognition of the fact that «while several of the successful "parents" in multidisciplinary companies create value, the vast majority of it destroys».
business strategies definition we Give the remaining two elements.
5. The distribution of resources between the business units. Àëëîêàëèçàöèè be generated within or outside of the company's financial resources, as well as (for the majority of suppliers) premises, equipment and staff. Even in a small firm decision on the allocation of resources can play a key role in the strategy of the business as a whole.
6. The existence of synergy effects between the businesses of the company: extraction of the benefits of complementarity and mutual support business units. This element may be relevant for service companies, which have a diversified businesses, related in nature. It is logical to assume that companies that are able to achieve the synergies between the diversified businesses, gain an advantage over those who are not able to achieve it.
The six elements of business strategies definition can be presented in the form of three major components:
•the decision on the product-market investment defines the scope of the business, the intensity of investment in it and the distribution of resources between several business units;
•strategy of the functional areas define what makes the company;
•a framework of sustainable competitive advantage (PPC) defines the corresponding functional strategies assets, competence and/or synergistic effects.
The main strategic direction (in the capacity of which may be type, theme or direction of the business strategy) is a comprehensive concept, which creates or êëàññèôèöèðóþùàÿ business strategies and approaches for gaining the PPC on the groups depending on their underlying ideas. To provide various basic strategic directions, in particular, innovation, globalization, entrepreneurship, the use of advanced information or the production technologies.
Having familiarized with the basic aspects of business strategies, we come to the extraordinarily important point, which is often an insurmountable obstacle for managers and marketers trying to implement the construction of adequate business strategies for their companies. The essence of the problem is reduced to the multiplicity of approaches, the names of the terms set forth in the works of different authors. Each of them has adherents and opponents, in the basis of each of them there are works of prominent scientists in the field of strategic management. All of them have a history of development. None of them is an absolute ideal, suitable for any situation and for any company. However any of these schools has the right to existence and application in practice. It is important to correctly and consciously make a choice.
We will try to reduce the level of uncertainty in the kaleidoscope of classifications and determine the methods of selection of acceptable for the specific case of strategic sector.
