Strategic planning business

Business Strategy is concerned basic decisions about the enterprise course of action. It determines the basic goals and objectives of an organization. Business Strategy provides the strategic framework of customers, products, competition, processes, technologies, resources, finance and people. It is nothing but supervision of the future from the present. Business strategy assumes the future place of an organistaion.It concerns business visions, business models, strategic assets, customer bases, competitive strategy etc. Business strategies include each and every aspect of en enterprise like branding, reatiling, marketing, competioetivestrategies, growth, pricing, scaling and advertising etc. Strategies are the essential plans for achieving and sustaining business success. They are ideas for making a product or service and selling it to the customer with a slice of profit built into it. Strategic thinking is about creating, protecting and enhancing the competitive advantages and profitability of the firm.

The main objectives of business strategic planning are to discover its unique strategic position in the below aspects:

Define and decide what business it is in.

Ask itself three questions

(a) who should it target as customers?

(b) What products or services should it offer them?

(c) How should it do this in an efficient way?

Design the organizational environment that will support the choices made.

In a business environment strategies planned at various levels of an organisation.Few of them are:

Corporate strategy: It is involves with meeting needs of stakeholders.

Business Unit Strategy: It guides the business in meeting competitors of an organs ion.

Operational strategy: Operational strategy focuses more on the business processes, people and resources.

Strategic Analysis:

Strategic analysis is nothing but analyzing the strengths and weaknesses of an organization by using various tools and techniques. They are:

PEST analysis: Useful to analyze the business environment.

Scenario analysis: To estimate future business of a firm.

Five force analyses: To assume the competition level in an enterprise.

Market segmentation: To segment the customers and users.

Directional policy matrix: To evaluate the competitive strength of some selected markets.

Competitor analysis: Complete analysis of competitive position.

Critical success factor analysis: To identify the key area to concentrate more.

SWOT analysis: To analyse the strenghts, weaknesses, opportunities and threats.

Example of a successful Business strategy:

Indian grocery retailer Subhiksha's target was to open 1,200 stores by March 2008. Subhiksha has not placed itself against existing Indian players like Nilgiris or Food World, Spencer's Daily and Big Bazaar in retail marketing, who have set up air-conditioned outlets in India. Subhiksha adopted pricing strategy of top retailers like Wal-Mart, which offers low unit prices to customers and the resultant high turnover to succeed in the competitive retail business environment. Subhiksha's pricing strategy is their USP. It offers all goods at discounted prices similar to the Every Day Low Pricing (EDLP) strategies of Wal-Mart in US, which makes customers to save in each purchase. Subhiksha price offers not limited to some particular goods like other stores. Consumers can avail of discount offers on all days of purchase. With regard to service, Subhiksha delivers the selected product to the customer.

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