The Purpose Of Business Strategy - 1501 Words

1. The purpose of business strategy is to ensure that the business achieves its goals. It is the method by which goals are achieved. The business strategy helps decide how to use the resources of the firm. The strategies also lay down what a firm will produce and the manner in which it will produce. For example, a company making cars may decide to invest in a large plant to realize economies of scale and reduce costs so that either it can lower its prices to gain a large market share or it can earn higher profits and grow financially. A differentiation strategy is one where the firm differentiates its products in some way to compete successfully. The differentiation is achieved by using expert technical expertise, talented personnel, or†¦show more content†¦Top quality and continuous improvement in quality are important mission components (Farhad Analoui, Azhdar Karami, 2002). Another important trend is to make the vision statement an important component of the mission. The vision shows the aspirations of the top management. It shows what the company is striving to become. The vision is combined as a part of the mission statement. A company philosophy is the distillation of its culture into a group of core values that affect all aspects of its business. The company philosophy guides the employees in their decision making. In contrast company image refers to the perception of the company s identity in the minds of the public. It is a combination of the company name, logos, its advertising campaign, the pub licity about the company, its products, its outlets, and its dealings with its stakeholders. Both the company philosophy and public image should be kept in mind when developing a mission. The mission is the purpose of the company. It guides the actions of the company. The actions must be guided by the company philosophy because it represents the culture and it should also consider its public image because it relates to the perceptions of the company. Unless both these factors are balanced the mission statement will not be effective. 3. Some fundamental ethical approaches that managers should consider is to consider ethical approach as a company philosophy. In this context the managers should considerShow MoreRelatedDefinitions Of Strategy For Business Purposes Essay1137 Words   |  5 PagesThe idea of strategy uses in organizations for business purposes, often understand as strategic management, started after the second world-war. The chronological order of definitions of strategy in organizational perspective is given by various writers in table-2. 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