Business Strategy
Strategic management process
Strategic management involves the art and science of inventing, implementing and describing cross-functional decisions that enable an organization to meet its set objectives (Bob, 2009). It is an ongoing process, which runs throughout the life of an organization. In the global environment, business require the strategic management process to help in coming up with powerful decisions that enable business organizations to run successfully. Strategic management process within the global market involves technological developments, increased communication and movement, improved awareness and better understanding as well as improved economic growth. As a result, business people within the global environment ought to be conscious that supplies, markets, locations and partners are everywhere within the world. Strategic management process within the global environment will enable business people to take advantage of business opportunities that arise in different areas (Bob, 2009). Through strategic management process, the boundaries between countries cannot define the global business imaginations. This makes it possible for people to see and appreciate the world from diverse perspectives. Strategic management process also encourages the competitiveness of goods and services at the international level and not within the local levels. This shows that strategic management process is essential in the global environment.
The strategic management process within the global environment involves top managers, employees and the board of directors of the organizations (Bob, 2009). These people are essential in the strategic management process because they help in making broad plans, which contribute to the success of the organizations. They also take part in setting goals, which direct the operation of the organization. The world is getting integrated into a single business community which joined by common communication systems. This has unified the world’s economic blocs thus promoting global businesses. In this connection, strategic management process within the global environment has helped in improving international businesses.
The Role of Corporate Governance in Strategic Decision Making
Corporate governance plays very crucial roles in strategic decision-making. One of these roles is that corporate governance directs the decisions of the organization. Corporate governance helps to ensure that strategic decisions are made based on the interest of the stakeholders in order to ensure successful organization outcomes (Henry, 2009). Many organizations are highly focused on their corporate shareholders in order to ensure that there are successful outcomes. The other role of corporate governance in strategic decision-making is to set policies. Corporate governance forms the system that is used in directing and controlling organizations. In order to direct and manage organizations, corporate governance establishes and enforces policies, which are meant to enhance effective operation of the organization. For example, corporate governance will lead in the formation of ethical codes, which guide the behavior of employees and shareholders. These ethical codes will also approve the functional responsibilities and position of different stakeholders in an organization. Another role of corporate governance in strategic decision-making is the establishment of corporate strategy. The corporate board in any organization must be involved in establishing an obvious definition of the organization’s principle as well as the desired results (Henry, 2009). For example, if a company has a target of becoming a worldwide leader in a technical field, then its corporate objectives and strategic plans need to be measured against the company’s ability to work towards its set goals. In addition, corporate governance will also ensure that the resources being allocated to the organization support the strategic goal. This shows that corporate governance supports the strategic positions in the organization. Strategic decisions such as pricing position, closing plants, existing markets and mergers require the attention of corporate governance in order to ensure that they are successful decisions (Henry, 2009). In this connection, corporate governance plays crucial roles in strategic decision making in an organization.
Challenges in strategy implementation
The implementation of different organization strategies faces various challenges. The challenges of strategy implementation need to be addressed well in order to enhance a successful implementation. One of the challenges facing strategy implementation is making a jump to a worldwide order (Joel, 2010). The fragmented financial and opinionated systems in the world today contribute to struggles in the implementation of diverse strategies. In addition, trade barriers and communication challenges also make it hard to implement the current business strategies. Implementation of certain business strategies require complicated worldwide systems, which require a global order, which may not be currently available. Another challenge that affects the implementation of strategy is the reconciling of economic interests. Different organizations have different economic interests, which are hard to reconcile (Joel, 2010). As a result, it is very hard to implement strategies involving different organizations that have differing economic interests. In this connection, there is need for a market that has collaborative working relations in order to enhance the implementation of strategies. The other challenge affecting the implementation of strategy is the achievement of sustainable development. Lack of sustainable development in various organizations makes it hard to implement diverse strategies (Joel, 2010). This is because; the organizations may lack sufficient funds to finance the implementation of strategy. Management of complexity is another challenge that affects the implementation of strategy. Some organizations have strategies, which are complicated, and this makes it hard to implement such strategies. These challenges need to be addressed first in order to create room for the implementation of the different business strategies.
Strategies and Alternative strategies
There is need for strategies and alternative strategies in order to ensure global business success. Market strategy is one of the strategies that can enhance business success. This is because, market penetration will help to ensure that there is increased sales since business people can reach more clients. Another strategy is market development. The development of a good market can be achieved through intensive research (Frederick, 2006). A good market will help to ensure that more customers are tapped for the various products and services and this will enhance the success of the business. Production diversification is another good business strategy. It helps to ensure that a company produces different products and services, which attract diverse clients. Moreover, extending links with excellent technology centers is another strategy that can increase the success of the business. However, potential strategic alternatives are also essential in order to enhance business success. Market strategy can be replaced by offering excellent goods and services, which can market themselves without the need to intensive market research. This is because; excellent goods and services will attract and maintain a high flow of clients into the business. Good pricing is also another alternative strategy that can enhance the success of the business because clients will stream o the organization to get the well-priced goods and services. In this connection, strategy and potential alternative strategies are essential for the success of a business.
References:
Bob, T. (2009). Corporate Governance: Principles, Policies and Practices. Oxford: Oxford
University Press
Frederick, D. (2006). Corporate Governance Best Practices: Strategies for Private, Public &
Not for Profit Organizations. New York: Wiley Publishers
Henry, M. (2009). Rise and Fall of Strategic Planning. New York: Penguin Publishers
Joel, L. (2010). Driven: Business Strategy, Human Action & the Creation of Wealth. New York:
McGraw
