Topic: importance

of strategies

Student Name: Lavanya Joshi

Date: 08/03/2021
Class: BBA
Section: A
Subject Faculty: Ms. Roli
Wadhwa
Subject Code: 308
 Contents of the Presentation
Introduction

What is business strategy?

Purpose of business strategy

Level & Nature of strategy

Importance and role of strategy

Conclusion

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 Introduction
WHAT IS STRATEGY?
• Strategy is an action that managers take to attain one or more of the
organization’s goals. Strategy can also be defined as “A general direction
set for the company and its various components to achieve a desired state in
the future. Strategy results from the detailed strategic planning process”.
• Strategy can also be defined as knowledge of the goals, the uncertainty of
events and the need to take into consideration the likely or actual behavior
of others. Strategy is the blueprint of decisions in an organization that
shows its objectives and goals, reduces the key policies, and plans for
achieving these goals, and defines the business the company is to carry on,
the type of economic and human organization it wants to be, and the
contribution it plans to make to its shareholders, customers and society at
large.
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What is business
strategy?

• A business strategy is a set of

competitive moves and actions that a
business uses to attract customers,
compete successfully, strengthening
performance, and achieve organizational
goals. It outlines how business should
be carried out to reach the desired ends.
• A business strategy is a set of
competitive moves and actions that a
business uses to attract customers,
compete successfully, strengthening
performance, and achieve organizational
goals. It outlines how business should
be carried out to reach the desired ends.
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 •  It is a scheme of corporate intent and action, which
is carefully planned and flexibly designed with the
purpose of:
• Achieving effectiveness,
Purpose of • Perceiving and utilizing opportunities,

Business • Mobilizing resources,

• Securing an advantageous position,

strategies • Meeting challenges and threats,

• Directing efforts and behavior and
• Gaining command over the situation.

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Levels of business strategy

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 Levels…

Corporate level strategy: Corporate level Business level strategy: The strategies
strategy occupies the highest level of
that relate to a particular business are
strategic decision making and covers actions
dealing with the objective of the firm,
known as business-level strategies. It is
acquisition and allocation of resources and developed by the general managers,
coordination of strategies of various SBUs for who convert mission and vision into
optimal performance. Top management of concrete strategies. It is like a blueprint
the organization makes such decisions. The of the entire business.
nature of strategic decisions tends to be
value-oriented, conceptual and less concrete
than decisions at the business or functional
level.
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oFunctional-Level
Strategy:
• Functional strategy, as is suggested by the
title, relates to a single functional operation
and the activities involved therein.
Decisions at this level within the
organization are often described as tactical.
Such decisions are guided and constrained
by some overall strategic considerations.
• Functional strategy deals with relatively
restricted plan providing objectives for
specific function, allocation of resources
among different operations within that
functional area and coordi-nation between
them for optimal contribution to the
achievement of the SBU and corporate-level
objectives.

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 Nature of business strategy

A business strategy is a combination of proactive actions on the part of management,

for the purpose of enhancing the company’s market position and overall performance
and reactions to unexpected developments and new market conditions.
The maximum part of the company’s present strategy is a result of formerly initiated
actions and business approaches, but when market conditions take an unanticipated
turn, the company requires a strategic reaction to cope with contingencies. Hence, for
unforeseen development, a part of the business strategy is formulated as a reasoned
response.

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Importance of business strategies
Without strategy, a company will not move forward in an orderly
manner. It will not know its own position in the market as compared
to its competitor and hence, the firm will not be able to derive a
competitive advantage.
The most important aspect of strategy is competitive advantage.
Because of strategy, you are able to stay ahead of your competitors or
at least you are able to beat the competitors who are below you in
market standing. With good strategy, you might beat the top
competitor as well.
Importance of Strategy with the following points.
 Strategy helps with sustainability and competitive advantage -
When making a strategy, you look at where you are standing in the
market currently and you plan down the line. As a result, you are
increasing the sustainability of your business. You are planning for
anything that does not work out well for you and you are also
planning in case anything works out too well.
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Similarly, because you know your core strengths, Look at the Apple vs Microsoft war
going on since ages and you will see that each one of them has some trick up their
sleeves each new year. And both of them have been sustainable and competitive because
they have kept looking forward and kept planning their strategy.
 Strategy helps in preparation for different markets and products -
Both, products and markets are dynamic in nature. Strategy can step in and play its role.
Strategy is important because it will give you a guideline of the future targets of the
company using which, the company can realign its marketing strategy for the product
which is facing fire. It can also launch new product variants or new lines and lengths if
the strategy allows.
 Strategy can help with gap analysis-
A key factor in the growth of any organization is gap analysis. When we are trying to
cater to our customers, there are numerous gaps which can arise from time to time.
These gaps might be service gaps, expectation gaps or anything else. Because strategy
keeps analyzing the current performance of the firm, it also carries out gap analysis.

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 Role of strategies
 Framework For Operational Planning
Strategies provide the framework for plans by channeling operating decisions and often
predeciding them. If strategies are developed carefully and understood properly by
managers, they provide more consistent framework for operational planning. If this
consistency exists and applied, there would be deployment of organizational resources in
those areas where they find better use.
 Clarity in Direction of Activities
Strategies focus on direction of activities by specifying what activities are to be
undertaken for achieving organizational objectives. They make the organizational
objectives clearer and more specific. For example, strategies will provide how profit
objective can be sharply defined in terms of how much profits is to be earned and what
resources Of how much profit is to be earned and what resources will be required for
that. When objectives are spelled out in these terms, they provide clear direction to per-
sons in the organization responsible for implementing various courses of action.
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 Increase Organizational Effectiveness
Strategies ensure organizational effectiveness in several ways. The concept of
effectiveness is that the organization is able to achieve its objectives within the given
resources. each resource of the organization has a specific use at a particular time. Thus,
strategies ensure that resources are put in action in a way in which these have been
specified. If this is done, organization will achieve effectiveness.

 Personnel Satisfaction
Strategies contribute towards organization effectiveness by providing satisfaction to the
personnel of the organization. Such clarity will bring effectiveness at the individual
level and consequently at organizational level. Strategies provide all these things in the
organization through which everything is made crystal clear.

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 Conclusion of the Topic
“without a strategy the organization is like a ship without a rudder,
going around in circles. It is like a tramp; it has no place to go.”

Most business failures happen due to lack of strategy, or the wrong

strategy, or lack of implementation of a reasonably good strategy.

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