Business Strategy Analysis Essay

Business Strategy Analysis Essay

Business Strategy Development

Introduction

According to (Gamble, Peterraf, & Thompson, 2019), business development (BD) strategy is the process of the analytical preparation for the probable growth opportunities in the market by a company.

Process: Business Strategy Development

Gathering of facts: A business needs to undertake SWOT and PEST analysis of the environment in which it operates (Krogerus & Tschappeler, 2018). This plays a useful role in forecasting and designing strategies of getting new customers and also gaining a competitive advantage.

Vision statement development: In the process of business strategy development, a company must ensure it is aligned to the vision in the industry (Gamble, Peterraf, & Thompson, 2019). Vision statement helps in developing the mission of the business development strategy by a company. Business Strategy Analysis Essay

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Development of a vision statement: The purpose of an organization is defined in its vision.  Outlining the primary objective of a business in the market is the third step of BD strategizing (Keller, 2012).

Identification of strategic objectives: At this level, the aim is developing asset of high-end objectives for all business units (Gamble, Peterraf, & Thompson, 2019). Business managers need to highlight the priorities and inform the work team about their plans of ensuring successive realization of objectives.

Tactical plans: In this stage, managers generate innovative ideas of converting the strategic objective into the desired short-term or long-term objectives. Each departmental action need to be considered in tactical plan setting.

Performance management: This process is done by capturing the right information, splitting it, and prioritizing on the information that clearly indicate the strategic vision of the company (Rumelt, 2011).

Strategic Thinking: Key Decisions Necessary for Making Strategy Decisions, why

Engagement and communication: The question whether to engage the workforce in decision making must always come in the mind of a good manager when making critical strategic decisions (Gamble, Peterraf, & Thompson, 2019). Employee’s input in terms of ideas, opinions, and views regarding market expansion approaches should not be ignored in the decision making process.

Marketing mix: Managers of a company must understand that the company’s marketing mix greatly influences their strategic decisions. The marketing mix comprises of the product, price, place, and promotion (Gamble, Peterraf, & Thompson, 2019). In the expansion of market policy, consideration of the type of product, its price, the location of business and the promotion strategies is very vital of a manager. Business Strategy Analysis Essay

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Innovation: Organizations must always have courage when taking risks. Some business strategy plans include the development of a new product or service or the restructuring of a department. In such critical decisions, managers must put workers into groups- and such an initiative leads to success.

(Chritine, 2012): What are my decision models and how do they aid/hinder this process, why

SWOT Analysis– A SWOT analysis is the main decision model that aids business strategy development by a company. This model analyses a company’s strengths, weaknesses, opportunities, and threats in the industry (Krogerus & Tschappeler, 2018). The model aids the success of business strategy development since the business manager has all the required information for the company both internally and externally.

PEST Model: Like SWOT, PEST abbreviates the political, economic, social, and technological factors that affect a business’s performance externally. These factors are beyond managerial control and thus a business leader must consider them when making business strategy development policies (Krogerus & Tschappeler, 2018). It is very useful since the manager is able to project the future success based on the current market conditions.

Porter’s Five Forces: This business model is built around the forces that affect the profitability of an industry (Krogerus & Tschappeler, 2018). In making business strategy development, a good manager consider the threat of new entrants, threat of substitute offerings, customers bargaining power, suppliers bargaining power, and the competitive rivalry among the existing companies. Business Strategy Analysis Essay

Conclusion

In conclusion, a business manager must follow all business strategy and policy development procedures in decision making.

Annotated Bibliography

Lee, F. (2018, March 12). Business Development Strategy: A High-Growth Approach. Professional Services Marketing Today, 1-12. Retrieved January 12, 2019, from https://hingemarketing.com/blog/story/business-development-strategy-a-high-growth-approach

In his “Professional Services Marketing Today” journal, Lee states that a company’s business development strategy may be the key to either success of failure in the market. Lee’s post explores the means of creating a Business Development (BD) strategy and associated plan that can propel a firm to new levels of profitability and growth.

Lee defines BD as the process of spotting and gaining new clients and business opportunities by a company. He further notes that the scope if business strategy development is wide ranging- and vary from a firm to another. However, the essence of designing a BD strategy by a company is attracting prospects, building engagement, and turning opportunities into clients.

In the modern business world, every competitive firm must have a BD team. The BD personnel sources for new clients and channels of broadening business from the potential markets in the industry. Additionally, Lee notes that most technologically evolved companies refer to the whole marketing and sales process as BD.

But does BD strategy differ from marketing strategies? Lee answers this question by defining marketing as the process of making it known to the target markets the products and services that the business is offering. The strategies of product promotion for the purposes of winning larger markets are also in the concept of marketing. To this extent, business development is a subset of marketing.

(Richard, 2016)

In the “Resources for Business Analysts”, Richard presents the tools and techniques that managers can use in decision making. According to Richard, many techniques, models, and tools can get applied in BD strategy analysis. He also explains the various challenges that face a manager in selecting the best decision model, tool, or technique. BD managers have the responsibility to clearly understand the market before implementing any policy.

In the article, Richard explains some of the most common decision making models, tools, and techniques by managers in business. The most common techniques or models as explained by Richard are VMOST (Vision, Mission, Objectives, Strategy, and Tactical), the SWOT model, the PEST model, SOAR (Strengths, Opportunities, Aspiration, and Results), Porters five forces, Boston Matrix, and maturity models among others.

In the explanation of where these models and techniques can be applied, Ricard explained each item alone. The SWOT model represents the internal and external factors that a manager must consider in BD strategy decision making. The PEST model analyses the external factors that a manager must consider when designing BD strategies.

In explanation of the overall BD strategy formulation success, Richard uses the VMOST technique. Under this model, a manager understands that all BD strategies are designed towards winning more clientele and growth in the market. And thus, the vision, mission, objectives, strategies, and tactics of the company must be aligned to stakeholder needs. Richard also presents the porter’s five forces by arguing that they help BD managers in understanding the position of their companies in the market.

References

Gamble, J., Peterraf, M., & Thompson, A. (2019). Essentials of strategic management. New York, NY: McGraw- Hill Higher Education.

Keller, T. (2012). Every good endeavor. New York, NY: Riverhead Books, Penguin Group.

Krogerus, M., & Tschappeler, R. (2018). The decision book: 50 models for strategic thinking. New York, NY: W. Norton & Company, Inc. (Revised Ed.).

Lee, F. (2018, March 12). Business Development Strategy: A High-Growth Approach. Professional Services Marketing Today, 1-12. Retrieved January 12, 2019, from https://hingemarketing.com/blog/story/business-development-strategy-a-high-growth-approach

Richard, L. (2016, May 10). Strategy Spotlight: 8 Tools & Techniques To Apply To Strategic Analysis & Planning. Resources for Business Analysts, 1-8. Retrieved January 12, 2019, from https://www.batimes.com/articles/8-tools-and-techniques-to-apply-to-strategic-analysis-and-planning.html

Rumelt, R. (2011). Good strategy/bad strategy: The difference and why it matters. New York, NY: Crown Business.

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