Why create strategy – importance?
“Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stockholder expectations” Johnson et al (2008). http://aiconsortia.com/2011/02/ac/why-does-a-business-need-a-strategy/ Strategies are the long-term plans that a business puts in place to achieve its aims and objectives. “IMI’s goal is to achieve market leadership in the global niche markets it serves. A niche market is a relatively small and often highly specialised segment of a market, which has few competing companies supplying it.” (http://businesscasestudies.co.uk/imi/engineering-advantage-strategy-in-action/setting-strategy.html) Strategy of a company provides the big picture that shows how all the individual activities are coordinated to achieve a desired end result. It is important as it is used to convince banks that they have a good idea, they can secure finance from stakeholders, it creates vision and mission statement, when selling a idea to a investor a company must have a strategy to show them. (http://aiconsortia.com/2011/02/ac/why-does-a-business-need-a-strategy/) Strategy provides a direction for a company. improves the business and leads to increased competition. “If you have a new, big competitor who has just entered your market or is preparing to enter the market and has the potential to be a serious threat, it is the right time to take a good, hard look at your business and the way it should compete in the future. Perhaps the new competitor has taken over one of the existing businesses (or even several in an attempt to consolidate your industry) and it's clear that they have a very different approach to business and different goals. Perhaps the new competitor has a different business model and has significant advantages to the customer. Perhaps the competitor has entered the market from overseas and...
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