Why No Corporation Should Be Without A Realistic Business Strategy - Buznew.com


Why No Corporation Should Be Without A Realistic Business Strategy

By Mary Nickerson

Modern society is complex and it changes at a staggering pace. Incredible advances are made in all fields, resulting in new products, services and demands from consumers. Only those enterprises that stay ahead of the game can hope to grow and prosper. The only way to stay abreast of change is to anticipate and plan for those changes. This, in turn, can only be achieved if there is a proper business strategy in place.

Big companies that consist of various trading units are in danger of working against themselves if they do not have specific plans in place. These plans must make sure that each unit works in cohesion with the other units that form part of the company. If there are no strategic plans in place, the various units can actually work against each other, causing the mother company harm.

All organization, large and small and regardless of its purpose needs a strategic plan. This is because each organization is striving towards a very specific goal and it is almost impossible to achieve any goal or objective without a practical plan. A strategic plan is therefore a guideline that is developed to make sure that the organization keeps moving in the right direction.

No strategic plan can be developed in isolation. There are many external factors that have an influence on the organization. These factors need to be studied and interpreted in terms of exactly how they will be influencing the operations of the enterprise. Environments that need close study include the fields of finance, technology, politics and demographics. These and other external environmental factors will, to a degree, dictate the future direction of the organization.

The inner workings of the company must also be analyzed. It is necessary to identify threats to the company and to recognize distinct opportunities. Plans must be made to avert threats and opportunities need to be exploited as best possible. It is furthermore necessary to identify the weaknesses of the company and its particular strengths. Plans can then be made to build on the strong points and to eliminate the weak ones.

Many large corporations prefer to hire independent experts to develop strategic plans for the enterprise. This is because those inside the organization often find it very difficult to remain objective. Strategic planning also requires a high degree of skill in various fields and these skills are not often to be found internally. It is vital however, that various experts within the company provide input to the experts.

A strategic plan can never be completed. This is because the world keeps changing and the factors that have an influence on the business also change. The strategic plan must keep pace with these changes and it is often necessary to revise goals previously set in order to capitalize on new developments. No organization can hope to grow or to achieve its goals if it does not carefully monitor the environment within which it operates.

Without a long term plan no business can hope to show consistent growth. It is necessary to identify those changes, trends and developments that will impact upon the business. Predicting the future accurately is impossible. Yet it remains possible to keep track of developments and to make provision for anticipated changes.

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