Basic Business Strategy Concepts

Basic Business Strategy
Basic Business Strategy Concepts

Strategic management or namely basic business strategy concepts is strategy applied to achieve company goals, which include the stages of planning, implementation and evaluation. Not only companies that have strategic management, corporate law must have a management strategy, because management strategy involves long-term decision making and complex, and oriented to the future.

Basic business strategy in strategic management process consists of several steps, i.e. defining the vision and mission of business, analyze the internal and external environment, choose a cause and a target market, develop business strategies, implement plans and programs gather feedback, as well as control of test. All of these steps to keep the business unit was not hampered by the neighborhood, looking for the best possible opportunities and just in case if there is a new problem.

The vision is the company’s goals are long termed, and the vision is also a differentiated between a company and another company. The vision contains a business philosophy of decision-making, implying the emitted image company, reflecting the company’s self concept and identify areas of product provided the company. While the mission is the stages that the company performed to achieve the vision of the company, or are short-term or supporter of the vision.

Analysis of internal environment will produce the company’s strengths and weaknesses. The company’s internal analysis, also known as the analysis of company profile, because it illustrates the strength of the company, both from the quantity nor the quality of marketing, human resources, physical resources, operations, finance, and management the organization.

Analysis of the external environment will produce the company’s opportunities and threats. The external environment consists of three factors, namely the remote environment, industry environment and operations environment.

After the company did an analysis of the strengths, weaknesses, opportunities and threats known as SWOT analysis. Furthermore, the company will formulate objectives. Objectives describe the goals more specific in amount and time. Thus, the target will make it easier for companies in the planning, implementation and control of the target will show what the company wants to achieve. The strategy is the company’s plan to reach the goal. Every effort must devise strategies to achieve the goal. Large multidivisional business company usually has three levels of strategy, namely, corporate strategy, business strategy and functional strategies.

Jack Trout says that the core of the strategy is how to survive in a world of competition, how to make a good perception in the eyes of the consumer, be different, analysis the strengths and weaknesses of competitors, became specialists, master one word simple in the head, give direction and leadership to understand the realities of the market by being the first than to be better.

Basic Business Strategy
Basic Business Strategy

A clear strategy and a mature supporters may not be beneficial if the company failed to implement their strategy, then the implementation strategy that has been designed is compulsory nature. According to McKinsey Consoling Firm, the strategy is only one of the seven elements are indicated by a well-run company. Framework for the success of OSHA 7S from McKinsey, the first three elements is strategy, structure and system, three elements are considered as “hardware” success. The next four items are as “software”, that is style, staff, skills, and values together.

For implementing the strategy, companies need to observe the process and result, as well as continuing to monitor the latest developments happening in their internal and external environment. Some neighborhoods are stable from year to year, while others evolve  slowly in a way that can be estimated. However, there is also an environment that is undergoing major changes very quickly without cant predicted. The company must be sure of one thing, namely that the environment will change either fast or slow. The most important of the company must be prepared in any case.

Read to : Swot Analysis In Determining The Planning

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