Exploring Elements of a Successful Business Strategy
An integral part of today’s market place is business strategy. For the coordination of their operations and structure, all companies require a well-conceived business plan. Strategy is a long-term philosophy that determines its reach and direction in terms of a business and creates a relation between the optimum use of resources in the competitive environment in question and the maximisation of the wealth of shareholders. The secret to commercial success is a corporate plan that is immaculately developed with a consistent frame of mind. When the company suffers from a poor plan, however, then the commercial well-being is hampered and in severe cases may push the firm out of business. “The process of developing and implementing strategy enables managers to understand their customers and competitors.” (Kourdi 2003)
A focused business strategy is the key element to corporate success and balance sheet results. “A business level strategy is an action plan the firm develops to describe how it will compete in its chosen industry or market segment. A business level strategy describes how the firm will compete in the marketplace on a day to day basis and how it intends to do things right.” (Ireland el at 2007)
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- Volkswagen (2010) Publications, [online] Available at: http://www.volkswagenag.com/vwag/vwcorp/info_center/en/publications/2011/03/Volkswagen_AG_Geschaeftsbericht_2010.-bin.acq/qual-BinaryStorageItem.Single.File/GB_2010_e.pdf [Accessed: 18th March 2011].