Thursday, 24 January 2013

Business strategy in relation to organizations

A strategy is a game plan used by an organization to achieve its desired objectives within a specified period of time. Strategy is about shaping the future. It is actually the human attempt to get to desirable ends with available means (McKeown, 2011). It is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. According to Porter (1996), “strategy is the creation of a unique and valuable position, involving a different set of activities”. The word creation in his statement infers that a strategy involves making choices after evaluating a set of available actions.
Strategy may be looked at from two perspectives;
1.      A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem.
2.      The art and science of planning and marshalling resources for their most efficient and effective use.
Tactics are employed in decision making process, to make an accurate forecast of the future of the business (Masanell & Ricart, 2009). It highlights the core purpose and objectives of the organization and what exactly needs to be done in order to realize those goals. Resources necessary are allocated. Tactics are employed to ensure that the strategy objectives and goals are met.
Values: are the fundamental beliefs of an entity. They are the principles we use to define that which is right, good and just. Values provide guidance as we determine the right versus the wrong, the good versus the bad. They would refer to acceptable standards within the workspace which govern the behavior of the individuals within the organization (Putnam, 2011). These values must be within the organization’s purpose, mission and vision. Ethical considerations that act as a guide to the behavior and morals of all the stakeholders in the organization an organization’s values are largely set in its culture and traditions. Organizations values are the foundation of the organization and are determined by what customers expect in their day to day interactions with the organization. Examples include:
·         Customer centered care
·         Empathy
·         Development
·         Enthusiasm
·         Partnership
-An organization's values should be clearly outlined in their mission statement as a way to build commitment in its adoption within the fabric of the organization.
Values ensure the health and wellbeing of the firm in the long run.

Concept value of firms expands beyond economic value to include other forms of value such as employee value, customer value, supplier value, channel partner value, alliance partner value, managerial value and societal value.