Strategic Management and Business Policy : For Managers and Consultant (eBook)

Introduction

Business success or failure purely depends on the performance of an employee, and its management who are taking care of the administration of an organization. A common man is willing to start a business without ideas of a business. This book provides comprehensive information about what is the business? What are the motives of business? How to make business become the successful? What are the policies of the business? And also know the strategy, types of strategy, application of strategies at various circumstances, choice development, development of business models and evaluation of an organization's performance through application of models and finds the SWOT.

A common man knows the business, forms of business, classification of business and activities of the business. You find the suitable structure of a business enterprise and finds how the system can support the business, how to admin and manage of business, assess the competitive analysis, value chain analysis, environment analysis, situation analysis, develops strategic tools that determine the vision and mission of an enterprise. You can become a strategist to find the means and ends of an enterprise, now you get ideas how to formulate strategy at business level, functional and corporate level. You can know how to use strategic tools such as industrial analysis, situation analysis, competitor analysis, value chain analysis, business environment analysis and tailoring strategy analysis. These tools help you develop strategies, implement strategy and evaluate and control and monitor the strategy.

Business

Business can understand by you in three dimensions: one is an occupation, the second is a profession and third is the trade. Business is the person's occupation, profession or trade. It is an economic activity. It involves the buying and selling of goods and services and ancillary activities of a business.

The term ‘business’, ‘typically refers to the development and processing of economic values in society. Normally, the term is applied to portions of the economic activities whose primary purpose is to provide goods and services to society in systematic methods. It is also applied to economic and commercial activities of institutions which having other purposes.

Business principally comprises of an all profit seeking activities of the organization which provide goods and services that are necessary to the economic system. It is the major economic pulse of a nation, striving to increase society’s standard of living. Finally, profits are a primary mechanism for motivating these activities.

Business is in any organization which makes distribution or provides any article or service to the customers, who are belonging to members of the society. Business may be satisfied customers needs for these purpose customers are able and willing to pay for it.

Business may be defined as “the organized effort by an individual to produce goods and services to sell these goods and services in a marketplace and to reap some reward for this effort.”

Functionally, we may define business as “those human activities which involves the production or purchase of goods with the object of selling them at a profit margin”. Issues of business as outlined:

The term business refers to the state of being busy for an individual, group, organization or society. It is also interpreted as one’s regular occupation or profession or economic activities. It deals with a particular entity, company, organization, enterprise, firms or corporation. It also interpreted as particular market segment sector like computer business and it included under term business. It is wide and willing to use different activities. It consists of purchase, sale, manufacture, processing, marketing of products, services like manufacturing, trading, transportation, warehousing, banking and finance, insurance and advertising, etc. It is clearly stated that all business activity's main purpose is to earn profit. Profit as a surplus of business and it accrues and distributed to the owners of the business. Business has to pay wages to workers who work in the business. People invest money in business due to be getting retain. Retain is profit from the business. It is awarded to investor because of they are taking the risk. Profit is the motive for the investor who serves and run business and it is the stimulation effort of the business for growth, survival of the business.

Forms of Business

The various business forms of business are Sole Proprietorship, Partnership, Limited liability company, Business Corporation and Cooperative.

Motive of Business

Organizations are divided into two parts: Part one is trading organizations and Part two is Non Trading organizations. Trading organizations main concepts are earning a profit; it is the main motive of business. In other words, Non trading concern main concepts are rendering services to society. We will know the main issues that relate to profit, it is a main motive of business:

For every kind of business organization, profit is often regarded as motive for the entrepreneurs and it measures the overall performance of the business.

Profit is the tool for measuring and evaluation of the business efficiency and productivity at the managerial competence.

It is helpful to strategic managers how to take good decisions and actions which are turn into effective in the form of able to combine and utilize the available resource and able to sustain the organization with growth and survival of the business entity.

Business managers who will take higher efficiency and risk and certainly expect the greater volume of the profit from the business entity.

Business efficiency expressed in terms of percentage of profit to sales volume, to the capital employed, to the market value of corporate shares.

Outside investors eager to know the profit of the firm and to make an assessment about their commit funds and effective utilization of funds will be in the business entity.

Peter F Drucker has drawn some conclusions about what is a business and what are useful for the business and how to understand the term business. His conclusions that Business is created and managed by the people, a group of people who will be taking decisions that will be determined whether an organization is going to prosper or decline, whether it will survive or will eventually perish. This conclusion is true in the business. And business cannot explain in terms of profit. Business is to provide goods and service to the people. It provides the public with the things, it needs and wants in order to survive, enjoy life and improve in a material sense. From the point of view of consumer, business is the satisfied of the needs and desire of the customer demands which should be provided by the business.

Characteristics of Business

Goods that have been produced or procured for sale in retain for price enter the realm of business. This activity of selling results is the creation of the wealth of the society. In satisfying demand, business uses the resources of land, labor and capital. These resources when taken separately have little value; but business combines structure and refines the resources to produce to the value of the society. Further, business employees’ people who exchange their talents for wages and salaries. Therefore, these people exchange their compensation for the desired goods and service.

Business is profit-seeking activity. It supplies goods and services to customers who have satisfied their demands and desire. It adds to society’s value by earning of a profit. Profit is the biggest stimulus for maintains the survival of the business and its future development. Society has permits business to earn a profit as a reward for assuming the risks of operating a business.

Business is also an essential participant in society. For satisfying society demand, which supplying goods and services and earning profits. Business involves the most fundamental activities of the society. As a result, the Society has looks to business for something more than products, services and profits. It looks for business for leadership and direction in helping to achieve society’s objectives. It expects business to assist in the establishment of a better service to the society.

BUSINESS CONCEPTS

They are two concepts of business. One is the traditional concept and another is the New Concept.

A traditional business concept generally involves the buying and selling of products and services to ultimate customers. Now days, this concept is not suitable for certain industries due to rapid changes, fluctuations, innovations, inventions of new market, new customers, new product and services. Old concepts of business are outdated, Therefore, we can be redefining the new business concepts. New concepts emerged with the use e – commerce and ERP platform use to sell products and services.

The new concept is known as a modern concept. This concept enhances the using of technology, development of applications, and using the e commerce, ERP, Social media and the network marketing through internet for buy, sell products and services. New concepts completely change the traditional concept of business.

Emerging the new concept is the result of innovation of communication tools...