Business Strategy Essay Example | Topics and Well Written Essays - 2000 words - 1

Business Strategy - Essay Example Outsourcing and offshoring are some of the new business concepts contributed by globalization. These business strategies help the entrepreneurs to exploit overseas markets. Those who stick with the old business strategies may not take advantage of these revolutionary business concepts and may struggle to survive in the market. â€Å"Competition existed long before strategy. It began with life itself† (Henderson,1989, 139). Competition is becoming intense in every field of life and business is also not an exception. In order to stay in the market most of the organizations devises new strategies and approaches within and outside their organization. According to Markides (1999:6) â€Å"Behind every successful company there is a superior strategy; however there is little agreement on what strategy is or how to develop a good one†. This paper critically analyses the importance of strategy in business. Importance of strategy in business â€Å"There are two major types of str ategy: (1) corporate strategy, in which companies decide which line or lines of business to engage in; and (2) business or competitive strategy, which sets the framework for achieving success in a particular business†(Strategy formulation, n. d). Business strategy seems to be getting more attention than the corporate strategy because of the importance of it in determining future of the organization. ... For example, the recent financial crisis came quite unexpectedly and many big organizations struggled for survival. However, the negative effects of recession have not affected some organizations very much. For example, Apple Inc escaped from recession without much trouble whereas Lehman Brothers faced immense problems. This is because of the better business strategies of Apple Inc compared to that of Lehman Brothers. Negative entropy, Feedback and Steady state etc are some of the business strategies adopted by organizations. Negative entropy is a scenario in which organizations conserve something for the harder times. Apple Inc succeeded in conserving something for the harder times whereas Lehman Brother failed to do so. Feedback is another important business strategy through which an organization fine tunes its strategies. Negative feedback enables the organization to correct deviations or problems. For example, most of the new products developed by organizations will be tested in the market for a substantial period of time before the introduction of the final product. This is a business strategy adopted by organizations ensure the success of the new product in the market. Steady state refers to the balance to be maintained between inputs from the external environment and the outputs going back to it. In other words, â€Å"Companies should define their strategy not based on the product they are selling, but according to the underlying functionality of the product they are selling† (Markides, 1999, p.6). It is necessary to know the market requirement of a product before deciding about the amount of production. So the inputs from the market collected through various market research methods will help an organization decide about