Factors Affecting Business Strategies

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Factors Affecting Business Strategies

Factors Affecting Business Strategies

Business strategies refer to the science, craft and art investors use to develop, analyze and execute cross-functional decisions that facilitate organizations to accomplish long-term goals. They spell out the objectives and vision, mission, as well as developing plans and policies in relationship to programs that entrepreneurs make to realize these ambitions. This seeks to understand the influence of various factors that determine business strategies.

Turbulence

Turbulence is a market state with chaotic property changes. Capitalists require reliable information, before they invest their money, to establish the potential of a deal to regain the capital. This implies that efficient business planning is unachievable in the turbulent environment. Financiers make organization verdicts depending on existing market status at a given time (Kraatz & Zajac, 2001).

Technology

Technology encompasses the processes, techniques and methods that businesses apply to produce services or goods or achieve their blueprint outline. Computers, machines, and devices may contain the knowledge, which development of resources with little human management (Worthington & Britton, 2009). Advanced machinery and techniques help to achieve business strategies easy as they produce standardized goods with little human interference. In addition, one can choose the quality, size, and production out to suit a given market. This means that improved technology assists to attain business strategies convenient (White & Bruton, 2011).

Organizational design

According to Chandler (2005), various factors such as decentralization, formalization and complexity defines an organization layout. He contends that managerial approach must suit an enterprise’s tactics; otherwise, the policies are inefficient (chandler, 2005).

In summary, turbulence makes it challenging to predict long-term management goals of an organization due to high unpredictability. Investors devise target depending on statistical analysis of a venture. On the contrary, technology helps to attain investment quickly as it provides standard output. Finally, organizational design needs to match the scheme of a particular commerce if it has to pull off maximum yield.

 

References

Kraatz, M.S. & Zajac, E.J. (2001). How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence. Organization Science, 12(5), pp. 632–657.

White, M. A., & Bruton, G. D. (2011). The management of technology and innovation: A strategic approach. Mason, OH: South-Western Cengage Learning.

Chandler, A. D. (2005). The visible hand: The managerial revolution in American business. New York: ACLS History E-Book Project.

Worthington, I., & Britton, C. (2009). The business environment. Harlow, England: FT Prentice Hall.