Strategy is a plan or a process of getting a company’s objectives achieved in future. This process is planned mostly for a medium- until long-term period of approximately five to ten years. Thompson, Strickland and Gamble (2007) identify that Strategic Management require an environmental scanning to implement, monitor, evaluate and review a strategy to ensure the most efficient performance and highest output.
As Adrian Lewis (2015) justifies the three levels of re-engagement will increase the efficiency of employees and their motivation to work. A strategic management process determines the capability and weakness of employees and ensures them to improve. Through this method employees become more alert of their own performance and do want to improve it, especially with a financial incentive. Furthermore, a business strategy will prevent overlapping work due to better cooperation with employees. The company could e.g. offer trainings for their workers during work. Because a satisfied workforce is valuable and can lead you to success
Table of Contents
- 1. Introduction
- 2. Discussion on Importance of Business Strategy
- 2.1 Increase in the Efficiency of Employees
- 2.2 Financial Benefits
- 2.3 Future Planning
- 2.4 Strengths and Weaknesses
- 2.5 Better Decisions
- 3. Discussion on Importance of Strategy Review
- 3.1 Performance Measurement
- 3.2 Signalling Function
- 3.3 Ongoing Analysis
- 3.4 Corrective Actions
- 3.5 Determine Market Trends
- 4. Conclusion
Objectives and Key Themes
This text aims to explore the importance of business strategy and strategy review within organizations. It examines how effective strategies contribute to achieving long-term goals and improving organizational performance.
- The significance of business strategy in enhancing employee efficiency and motivation.
- The role of strategy in achieving financial benefits and optimizing resource allocation.
- The use of strategic planning tools for future prediction and market trend analysis.
- The importance of regular strategy reviews for performance measurement and corrective actions.
- The utilization of key performance indicators (KPIs) and digital analytics for monitoring performance and identifying market trends.
Chapter Summaries
1. Introduction: This introductory chapter establishes the concept of business strategy as a long-term plan for achieving organizational objectives. It highlights the importance of environmental scanning and the ongoing monitoring and evaluation of strategic initiatives to ensure optimal performance, referencing the work of Thompson, Strickland, and Gamble (2007) on strategic management.
2. Discussion on Importance of Business Strategy: This chapter delves into the multifaceted benefits of implementing a well-defined business strategy. It examines how strategic management enhances employee efficiency and motivation by identifying strengths and weaknesses, improving cooperation, and providing opportunities for professional development (Adrian Lewis, 2015). Further, it highlights the financial advantages, including cost reduction, optimized capital allocation, and improved decision-making processes (Management and Business, 2019). The chapter also explores the crucial role of strategic planning in predicting market trends and facilitating future planning, emphasizing its use as a roadmap for prioritizing strategic objectives and initiatives (Lucidchart, 2017). Finally, the chapter stresses the importance of using tools such as SWOT analysis to maximize organizational strengths and minimize weaknesses (Gisma Business School, 2019), and how a strong business plan supports better decision-making in challenging circumstances (Bizfluent.com, 2019).
3. Discussion on Importance of Strategy Review: This chapter focuses on the critical role of strategy review in maintaining organizational effectiveness. It discusses performance measurement, both quantitatively (e.g., profitability, efficiency) and qualitatively (e.g., skills, flexibility), using benchmarks to evaluate progress (Prachi Juneja, 2019; Managementstudyguide.com, 2019). The chapter also emphasizes the signaling function of performance measurement, providing crucial feedback on the success or failure of strategic initiatives and indicating the need for corrective actions (O'Brien and Dyson, 2007; Tapera, 2014). Ongoing analysis, including the use of key performance indicators (KPIs) and management information systems, is highlighted as essential for understanding current and historical performance (Pkf.com.au, 2019). Finally, the chapter demonstrates how strategy review helps identify market trends, enabling organizations to adapt their strategies and maintain competitiveness over time (The British Library, 2019). The importance of identifying areas needing corrective actions, such as training programs to improve employee skills, is also explored (Yourbusiness.azcentral.com, 2019).
Keywords
Business strategy, strategic management, strategy review, performance measurement, key performance indicators (KPIs), financial benefits, employee efficiency, market trends, SWOT analysis, strategic planning, corrective actions, long-term goals.
Frequently Asked Questions: A Comprehensive Guide to Business Strategy and Strategy Review
What is the main focus of this text?
This text explores the crucial importance of business strategy and regular strategy reviews for organizational success. It examines how effective strategies contribute to achieving long-term goals and improving overall organizational performance.
What are the key themes covered in this document?
The key themes include the significance of business strategy in enhancing employee efficiency and motivation, achieving financial benefits, optimizing resource allocation, utilizing strategic planning tools for future prediction and market trend analysis, and the importance of regular strategy reviews for performance measurement and corrective actions. The role of key performance indicators (KPIs) and digital analytics in monitoring performance and identifying market trends is also discussed.
What are the benefits of having a well-defined business strategy?
A well-defined business strategy offers numerous advantages. It enhances employee efficiency and motivation by clarifying roles, improving cooperation, and providing opportunities for professional development. Financially, it leads to cost reduction, optimized capital allocation, and improved decision-making. Furthermore, it facilitates future planning, helps predict market trends, and provides a roadmap for prioritizing strategic objectives and initiatives. Finally, it enables the effective use of tools like SWOT analysis to maximize strengths and minimize weaknesses.
Why is a strategy review important?
Strategy review is crucial for maintaining organizational effectiveness. It allows for performance measurement (both quantitatively and qualitatively), providing feedback on the success or failure of strategic initiatives. This feedback helps signal the need for corrective actions. Regular review, including the use of KPIs and management information systems, ensures an understanding of current and historical performance. Importantly, it also helps identify emerging market trends, enabling organizations to adapt and remain competitive.
What aspects of performance measurement are discussed?
The text covers both quantitative (e.g., profitability, efficiency) and qualitative (e.g., skills, flexibility) aspects of performance measurement. It emphasizes the use of benchmarks to evaluate progress and the signaling function of performance measurement in indicating the need for corrective actions. The importance of using key performance indicators (KPIs) and management information systems for ongoing analysis is also highlighted.
What tools and techniques are mentioned for strategic planning and analysis?
The text mentions several tools and techniques, including SWOT analysis for identifying organizational strengths and weaknesses, key performance indicators (KPIs) for monitoring performance, and management information systems for ongoing analysis. The importance of using strategic planning tools for future prediction and market trend analysis is also emphasized.
What are the chapter summaries?
The text provides summaries for each chapter. Chapter 1 introduces the concept of business strategy. Chapter 2 delves into the multifaceted benefits of implementing a well-defined business strategy. Chapter 3 focuses on the critical role of strategy review in maintaining organizational effectiveness. Chapter 4 is the conclusion.
What are the keywords associated with this text?
Keywords include: Business strategy, strategic management, strategy review, performance measurement, key performance indicators (KPIs), financial benefits, employee efficiency, market trends, SWOT analysis, strategic planning, corrective actions, and long-term goals.
What are the references mentioned in the text?
The text cites various sources including, but not limited to: Thompson, Strickland, and Gamble (2007) on strategic management; Adrian Lewis (2015) on employee efficiency and motivation; Management and Business (2019) on financial advantages; Lucidchart (2017) on strategic planning; Gisma Business School (2019) on SWOT analysis; Bizfluent.com (2019) on decision-making; Prachi Juneja (2019) and Managementstudyguide.com (2019) on performance measurement; O'Brien and Dyson (2007) and Tapera (2014) on the signaling function of performance measurement; Pkf.com.au (2019) on KPIs and management information systems; The British Library (2019) on market trends; and Yourbusiness.azcentral.com (2019) on corrective actions. Note that these are examples and not an exhaustive list.
- Quote paper
- Anonym (Author), 2019, The Importance of Strategic Management, Munich, GRIN Verlag, https://www.grin.com/document/1245609
