Question

Why is a concise Business Strategy a critical element to having a successful business? What is the purpose of a Strategy and what are the key elements? Give an example of a Business Strategy, in your own words, for a business that you frequent, use or know. minimum 250 words

Answer 1

A concise business strategy is a focused strategy and action plan and lead to clarity in actions as well as eliminate ambiguity and thus help us in better positioning of the firm in the market place.

This is important because a long drawn strategy could potentially confuse the managers in charge of implementing the strategy. Moreover, a concise strategy helps in better communicating the stand of the company to rank and file employees and helps in uniting efforts of everyone towards achieving the common goal of the organization.

The purpose of a strategy of a business is to define the market in which the company would like to compete in and also the value proposition that the company would like to bring to the market. It also lays down the long term vision of the company and provides a clear signal to the customers, employees and investors about the core values of the company and what it stands for. A strategy should have elements which the company aspires to have in its organizational framework and that could prove to be a differentiating factor for it. It also should consider features or positioning which the company should avoid to become. For example, a premium car manufacturer should have in its business strategy a desire to command premium and differentiate itself basis the products that it brings to the market. It should however remain away from competing on price.

Thus, the business strategy of a premium car manufacturer should be to be to bring most value for the customer by bringing best in class products and complement with great service and be able to charge a premium for the same.