Tuesday, May 6, 2014

Why No Corporation Should Be Devoid Of A Realistic Business Strategy

By Cassie Nickerson

The world is in a constant state of flux and things change almost on a daily basis. Trends change almost overnight and new products and technology is introduced all the time. This means that enterprises have to satisfy new demands all the time. This can be difficult for enterprises that are not future oriented. A detailed business strategy is the only way in which corporations and any other organization can hope to anticipate new trends and markets.

Big companies that consist of various trading units are in danger of working against themselves if they do not have specific plans in place. These plans must make sure that each unit works in cohesion with the other units that form part of the company. If there are no strategic plans in place, the various units can actually work against each other, causing the mother company harm.

It is not only large corporations that need strategic plans. Every organization, even non profit organizations need to have strategic goals. The organization or enterprise exists for a specific reason and to achieve specific objectives. Without a plan it is unlikely that these objectives will ever be achieved. A strategic plan is therefore a practical document that is designed to guide the organization towards the achievements of its goals.

A strategic plan must take many factors outside the organization into account. Developments in the fields of technology, medicine, the social environments, politics and many others will most certainly have a direct influence on the organization. These fields must therefore be studied. The purpose is to determine the ways in which advances will influence the organization itself. If this is not done no strategic plan can be realistic.

Naturally, the internal environment of the enterprise also needs to be studied. It is necessary to list all the weaknesses and strengths of the enterprise. This may be difficult because many people find it hard to be objective. It is necessary, however, because strengths can only be exploited if they are real strengths and weaknesses can only be eliminated if they are acknowledged.

The development of a strategic plan is a complex business and can hardly ever be done by a single person. Most corporations therefore hire external experts. Independent experts are less likely to be biased, threatened or subjective. It remains important, however, to be actively involved in the process because those inside the company have a better idea of where the organization wishes to go.

No strategic plan can ever be deemed to be completed. The world keeps changing and a myriad of environmental changes take place almost every day. These changes all have an influence upon the ability of the company to progress towards its goals. Changes must therefore be incorporated into the strategic plan, which will always be a work in progress.

Without a long term plan no business can hope to show consistent growth. It is necessary to identify those changes, trends and developments that will impact upon the business. Predicting the future accurately is impossible. Yet it remains possible to keep track of developments and to make provision for anticipated changes.

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