MT460 Management Policy and Strategy
Business strategy and its importance to a business entity
Strategy refers to determination of where one or a business is currently, where it is headed to and lastly how to get to that point. A business strategy generally refers to the overall objectives, goals and vision of an organization and the means of achieving the objectives, goals and vision. It is the art of formulation and also implementing specific decisions and actions aimed at achieving the overall goals and objectives of an organization. A business strategy as such provides the bigger picture showing how individual activities are organized and coordinate to ensure that the overall desired goals and objectives are met. Since a business strategy gives the overall direction of an organization, without it is difficult to attain or achieve the desired results or goals (Pearce II, & Robinson Jr, 2009).
One of the major importances of a business strategy to an entity is that it gives the overall direction of a business entity. Business strategies are formulated based on the available opportunities as well as threats facing a business, and also the internal weaknesses and strengths. The aim of a business strategy is to ensure that the threats posed by the external environment are minimized and also to strengthen or minimize the effects of internal weaknesses. The opportunities and strengths are combined to ensure maximum productivity is achieved. Without a business strategy, it would be difficult for an entity to realize the opportunities available to it as well as the threats. a business would not thus take advantage of an opportunity posed by an environment thus would not be profitable. Without a strategy a business is also more vulnerable to threats and its own internal weaknesses which increases costs and reduces productivity (Pearce II, & Robinson Jr, 2009).Another importance of having a business strategy is that it helps an...