Strategies In Business
“A strategy is a decision-making choice and involves considerations for internal strength and weaknesses and external environment affecting the company. When an enterprise is satisfied by its present position then the strategy becomes a stable strategy”
A strategy is actions plan, which sets the direction that a company will be taking. It is a decision-making choice and involves considerations for internal strength and weaknesses and external environment affecting the company. When an enterprise is satisfied by its present position then the strategy becomes a stable strategy. Then, the company will not like to change its strategy.Stability strategy is successful when the environment is stable. This strategy is exercised more often and is less risky as a course of action. A stability strategy of a concern for example is followed when the organization is satisfied with the same product, serving the same consumer and maintaining the same market share.
If the management is not satisfied with the present position then it adopts the Growth Strategy. Growth may mean expansion and diversification of operations of the enterprise. In Growth Strategy environment is changeable and favorable opportunities are available. In such a case growth strategy is helpful in expansion as well as diversification.
The Growth Strategy market is implemented through product development, market development, and diversification. In product development new products are added to the existing ones or they replace the old ones.
In market development, new customers are approached, or those markets are explored which were not covered earlier. In diversification both new products and new markets are added. In fact, diversification is a step ahead as far as the existing scenario of market dynamics is considered in minute detail.
An enterprise may retreat or retrench from its current position in order to survive or improve its performance. Such a strategy may be adopted during a period of depression, tough competition, scarcity of resources and reorganization of company in order to reduce waste.
A large firm, active in a number of industries may adopt a combined strategy. It represents a mixture of the three strategies mentioned above. A large concern may adopt growth strategy on one side and retreat strategy on the other. For any strategy to be effective there should be right people who can take objective and intelligent decisions by considering an assortment of aspects.
Author - DeeKay
This article was created by DailyOjo staff. Report Spam/Abuse