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Business Strategy

    • 1 posts
    January 23, 2014 3:36 PM EST

    What do you think of when you hear the words, "Business Strategy"? Do you think of businessmen playing a ruthless game of chess? This is what many people believe. Many people make the assumption that business strategy is something only evil businessmen would know. The assumption that only businessmen know business strategy is horribly wrong. The concept of business strategy is actually quite simple. They concepts reside in five questions:

    1)What will you business do? (Products or services are providing)
    2)How are you different from your competitors? (Rivals doing the same thing)
    3)What's your market? (What is the market of the product your making) (Example: Skin care, oil, auto parts)
    4)What are you going to do to insure you meet your financial expectations?
    5)What's your financial forecast? (How much money do you think you'll be making in a few months of opening?)

    These five concepts make up the theory of business strategy. As any logical person can tell, the theory is not sophisticated. It relies solely on the basis of “what will make the business suceeed”.

    Without an effective strategy, a company will most certainly fail in under two years of operation. This causes a lot of complaining consisting of the owners saying, “But I had a strategy”. Did you have TWO parts of the strategy? Let’s look at how Wikipedia has defined business strategy or “Strategic Management. 

    “In management theory and practice, a distinction is often made between operational management and strategic management. Operational management is concerned primarily with responses to internal issues such as improving efficiency and controlling costs. Strategic management is concerned primarily with responses to external issues such as in understanding customers' needs and responding to competitive forces. Widely-cited Harvard Business School professor Michael Porter identifies three principles underlying strategic positioning: creating a "unique and valuable position", making trade-offs by choosing "what not to do", and creating "fit" by aligning company activities to with one another to support the chosen strategy. Dr. Vladimir Kvint defines strategy as "a system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully."”

    If you read through that definition, you read that there is a distinction between operational management-internal business strategy- and strategic management-external business strategy.

    Recognizing both of these areas can make or break your business. Every company requires a plan that can address an internal or external issues. Companies that fail to design these plans usually fail themselves. As Benjamin Franklin said, “By failing to prepare, you are preparing to fail”

    • 2 posts
    April 28, 2014 5:31 PM EDT
    Hi all,could anyone recommend a good software program to use to track the prices of products throughout the year.
    Thank you
    • 1 posts
    May 13, 2014 1:27 AM EDT
    A good business strategy starts with the business you choose to operate. Perhaps the best way to start a small business and develop a business strategy is to purchase a business that is already successfull. If you are interested in buying or selling a small business, check out, the online business marketplace.
    • 34 posts
    December 4, 2014 2:48 AM EST
    There are lots of softwares in google. Some are free but mostly they paid softwares.
    • 79 posts
    October 9, 2015 8:01 AM EDT
    The strategy you will take may depend on each business. Learn the mindset of the expert entrepreneur and you may know their strategy. Once you know the tactics it gives assurance that your business will earn more profits and stay for long. Try to search for more information about boosting your profit.