BUSINESS MANAGEMENT STRATEGY
Business Management Strategy is a systematic way of planning and performing the business management process; It is a systematic way of planning and performing the business management process; in the most competent way to achieve the goals and objectives of an organization. It is a combination of strategy formulation and implementation; assessing the business competitors, setting goals and strategies to counter against the potential competitors, and environmental changes.
Developing a sound business management strategy is a must in this uncertain environment, fast and ever-changing world. It has become vital in the world of business where one must be innovative and forward-thinking like other competitors. Furthermore, a Business management strategy helps to generate solutions to improve the business process and growth of the organization. Thus, strategic management includes strategic planning, operational strategy, and innovative thinking.
For the business to sustain long term, it is important that there are strategies to support business functions and operations. Therefore, a strategic management process is deployed to run a business effectively and efficiently. Also communicating those strategies is extremely important for the success of the business. This helps to understand the purpose and direction of the organization by both the external and internal parties.
Strategic business management also refers to a dynamic process in terms of business decision-making and implementation. Which an organization tends to make to produce long-term benefits. Subsequently, business management strategy focuses on generating solutions addressing four issues:
1. Investigation
Investigating its business environment means forcing top management to be aware of the rapidly changing business environment; in terms of tastes, preferences, and technological changes. Such changes open either new opportunities or threats to the business; and failure to adjust it might bring disaster to the organization.
2. Statement
Stating the mission of the organization or the roles of the business in the market in which it is distributed. It allows management to deal with a number of fundamental strategic issues; such as competitive areas, requirements for success, strengths, and weaknesses of the business.
3. Setting goals
Setting goals to meet the organization’s needs in both the long term and short term. The specific objectives are in need for certain factors such as share market, return on investment, etc.; that the top management uses to measure the progress.
4. Establishment
Establishing the organization’s goal for doing business management activities that are the specification of program policies and strategies. Deployment of resources and guidelines to direct implementation and to provide a framework in which managerial decisions become consistent throughout the organization.
For a business strategy to be successful, it must take into consideration the industry’s best practices, customers’ feedback and involve the employees. Strategic business management is also important for businesses to make a profit and to make high-level business decisions. Planning, forward-thinking, resource allocation, recognizing the strengths and weaknesses, environmental impacts are some of the tools for strategic business management process.
The most common strategies tools used for business management are i) plans and policies and ii) resource allocation.
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- Plan and Policies: There is a need for a strategic plan to establish a business and to predict future trends and for this instead of a simple planning process strategic planning tools are in use. A well-thought-out strategy will help to come up with distinct ideas; for long-term goals and for the growth of the business.
- Resource Allocation: Strategic management ensures the wise allocation of the company’s resources such as time, money, people, equipment, and technologies. Resources get proper allocation to ensure meeting of the goals and objectives.
Knowing the business’s weaknesses and strong points is not enough. Strategic planning must be deployed to bridge the gap between them. Strategy management helps to know about the future potential shifts in the market; that affect the business and that impacts the environment. Business management strategies as a tool for successful business strategy planning gives major benefit to the organization; by paving the way for performing the tasks and generating solutions for improvement of the process.
In Context of Nepal
To summarize, businesses view strategic management as preparing long-term plans; giving more emphasis on annual strategic plans in a participatory way, and monitoring them. It is also often found in responding to environmental changes and competition. Additionally, Frequent changes in the government rules, regulations, and internal resource constraints; make businesses unable to do long-term forecasts and future plans. Further, the strategic plans are also not followed by aligning with the structure, system, and culture of the organization.
