Introduction
The strategy makes a business succeed. The business is successful if it continues making profits and expanding.
Below is a definition of strategy, the importance of strategy to individuals within the organization, how the knowledge of strategy will help in being successful in business, the business model of McDonald and Microsoft and the competitive advantage of Blackberry.
What is the strategy?
A strategy is “a way of thinking.” This simply means that a business strategy is made up of ideas whose aim is to attain certain specific targets. The targets could be written or unwritten. Written targets are usually well documented.
Unwritten is usually known in the minds of the employer and the employees. Furthermore, the strategy is also the art of implementing business targets within the capability of the organization’s resources. This means that strategizing is to use the available resources to attain goals.
The importance of strategy to individuals within the organization
Strategy causes individuals to be focused on. When they are involved in implementing the strategy, they pay attention to key areas that need their involvement. They become aware that their work is contributing to achieving specific goals. Hence this increases their motivation to work.
The strategy makes individuals have a clear picture of the organizational goals. They become aware of what the business intends to achieve and how it will achieve it.
This will make the individuals willing to cooperate and coordinate their activities with a purpose to attain the specific goals. Consequently, the individuals will have a positive attitude towards making changes when circumstances change.
In knowing the business strategies, individuals will be willing to employ their expertise and creativity in achieving their goals. They will be willing to use available resources to realize their goals. If everyone plays their role as expected, then there will be minimal wastage of resources.
How the knowledge of strategy will help in being successful in business
The strategy will help the company attain its goals. Strategizing involves planning. The market clearly states its objectives, goals, vision, mission statement and how all these will be attained.
When everyone in the business is made aware of the strategy, combined efforts and coordination within the business is achieved. As a result efficiency within the business is realized leading to the attainment of goals.
Strategizing involves allocating resources towards the achievement of goals. The business will include in its capital budget to support the strategy and monitor the progress from time to time. Businesses must plan for their future and allocate the funds where it is most appropriate.
The available resources can be allocated appropriately to avoid wastage. In cases where more resources are required, the business could plan on how to increase their capital so that the strategy is achieved. Increasing the capital could help the business survive rather than collapse.
Strategizing in a business will help in maintain competition in business. In a competitive market, a business must strategize to attain its goals and survive.
As a result, strategizing will help in making adjustments in the market when circumstances change. The success of a business is dependent on profits; therefore, the business must sell to stay afloat.
Strategizing will contribute positively to business expansion. A business grows from a small enterprise to a medium enterprise and finally to a large enterprise.
Strategizing means one is planning to expand especially in the future. Strategizing will, therefore, make the business increase its overall sales leading to expansion.
Employees who have a clear knowledge of the objectives will work very hard to achieve the goals of the company. Consequently, time and resources will not be wasted on activities that are not going to give the business profits. Thus strategizing minimizes wastage of resources.
Strategizing gives the company direction. It will help the company maintain good relations both internally and externally. It keeps the business performing what it is intended for. Workers will give an output as expected while consumers will have their needs satisfied.
The business model of McDonald
McDonald is a corporation that sells fast foods such as cheese, hamburger, desserts, French fries, breakfasts, and soft drinks. It owns a chain of restaurants in various parts of the country.
McDonald gains profits from franchising restaurants, managing restaurants and owning properties. It also ventures in business agreements in managing the corporation.
McDonald Corporation gains its revenue in various ways. It collects rents for the property it owns. In the business joint ventures it engages in, it may also lease or own the property depending on the nature of the agreement.
The McDonald Corporation trains its workers to ensure they are excellent; hence it increases sales of fast food products. Finally, the corporation sells to its franchise through an authorized third party.
The business model of Microsoft
Microsoft is a corporation based in the USA. It is a multinational company that specializes in selling the computer software. It gains revenue from selling software and maintaining the software by providing services.
Through strategy, it has grown from selling home computers to Microsoft office. It has also expanded into selling video games and window phones.
Microsoft Corporation gets its revenue from selling its diverse products. These products are mainly computer software. It enjoys a monopoly of the market hence maximize on the profits.
Another advantage it enjoys is the lack of competition in the market. This is because it is the largest computer software company.
In most cases, it puts a limitation on the use of its products to encourage people to continue buying for them. It also keeps inventing a new product for consumers to buy. The new products in most cases are an improvement to a previous product.
Customers, therefore, buy because of the specials features like increase in speed, large storage and easy to use have benefits.
The competitive advantage of Blackberry
Blackberry is internet-enabled mobile phone. The Blackberry phones have special features such as address book, memo pad, music player radio, camera, video, and recording capabilities.
It uses wireless mobile connectivity to send and receive emails while using power. Its competitors in the market include Nokia, Apple, Samsung, and LG.
Blackberry phone has an advantage to business travelers. The businessmen can access their emails using the internet enabled phone where there is a network. The calendar and task facilities in the phone enable them to access such information without needing to carry other notebooks to confirm.
Also, it has a large phone book that enables them to store many contacts. The size of the blackberry is small making it easy to carry and to use. Since it has many functions, one can make calls both personal and business as well as run errands irrespective of their location.
Some Blackberry phones have special features like the touch screen which make a selection of functions much easier. The Research In Motion, a company that manufactures the Blackberry use the special features as a strategy to market their phones.
Their competitors also have similar phones. Therefore the blackberry phone is made affordable so that consumers can buy at a reasonable price.
Conclusion
The strategy is important in planning for the future success of the future. Every business should have a strategy that will enable it to achieve its goals. Also, everyone’s cooperation is needed to realize these goals.