All organizations need to clearly define business strategies the paths they will use to achieve their strategic goals. That is, to follow some business strategy model. Without this planning, your managers and employees will feel lost, not knowing how the company will operate in the market.
In this context, there are different types of business strategies to transform this planning into reality, in a practical way. These strategies will form part of an overall program to ensure the organization’s performance and thus lead to the achievement of its objectives.
Different types of managers use different strategies to determine the company’s direction and activities within the market in which it operates.
Therefore, it is essential to know what they are and how to use the types of business strategies to ensure that the company achieves the desired results.
In this post, we are going to present different types of corporate strategies, so you can choose the one that best suits your business. What are the different types of business strategies?
There are several types of business strategies that can be used in situations presented to the company by the market.
Start-up companies, when defining the strategies they will use, will be able to better understand their potential and limitations, avoiding failures and achieving goals and results that are more consistent with their mission.
For mature companies, the market subject to constant changes makes it essential to continually rethink their operations. It may be necessary, for reasons of survival and competitiveness, to restructure the types of organizational strategies, the financial structure and even the products and services offered to the market. Growth strategies
Business strategies aimed at increasing profits, sales, or market share, increasing the company’s value, are considered growth strategies.
This means that there are favorable situations in the market that can turn into opportunities. In this scenario, the company seeks to launch new products and increase sales volume.
How to make a business strategy work?
First, remember that good execution comes from a disciplined process. It is essential to create a logical set of activities that connect across the organization for the strategy to work.
Second: people management needs to come before strategy or operational processes. After all, it is the people in the organization who know how markets change and develop, and they are the ones who create business strategies based on this knowledge. The team is responsible for taking the strategy off the paper and transforming it into an operational reality.
In this case, the company identifies an environment with potential threats to its survival. However, it has a number of strengths, such as financial availability, human resources and technology, accumulated over the years.
The problem with many managers is that they are more willing to put out fires than to prevent them from happening. They fail to execute the plan due to the lack of a framework or methodology in the work environment that is truly reproducible.
Thus, the important thing is that these managers connect their strategy to the individual goals of each employee. Here are four steps that will help you execute your strategy well.
Man has been planning for many years, since the beginning of his hunting and fishing activities with business strategies, in the search for protection. Nowadays we also use planning for our activities. In organizations it is no different, because for organizations to achieve their goals they need to plan their actions.
You must have already carried out the planning of business strategies activity when you defined your vacation, the destination you would go to, when you would go, what you would like to do; or for a birthday or wedding party.
where you had to define the location, guests, decoration, etc. We use planning for various activities, both personal and in our work in an organization.
For organizations to achieve their goals they need to plan their actions, map their plans, objectives and long-term goals.
Definitions of planning
Tajra (2006) describes that planning of business strategies is an administrative function that aims to improve the decision-making process, that is, a systematic means for decision-making, aiming to guarantee the company’s success in its current and future environment.
Dear academic, as you may have already seen throughout the other subjects of your course, administration involves some processes, which are called administrative functions. Planning is part of business strategies the administrative functions.
For Oliveira (2010, p. 5), planning can be conceptualized as a process, “developed to achieve a desired future situation in a more efficient, effective and effective way, with the best concentration of efforts and resources by the company” (2010, p. 5). .
We can see that planning is very important for business strategies of organizations to achieve their goals by choosing the best options, optimizing efforts and existing resources in the organization.
How to start putting the business strategy into practice?
The responsibility for the elaboration of the business strategies plan is in the hands of the company’s top management. But it must be done in a participatory way, with the collaboration of managers from all areas of the business.
The truth is that understanding what business strategy is and putting it into practice is quite complex.
Therefore, some methodologies were developed that aim to simplify the strategic planning process. Let’s address two of them so you can better understand what business strategy means.
Canvas Business Model
Created at the turn of the millennium by the Swiss Alexander Oster alder, it is a schematic table that helps to understand the different relationships of the different parts of the business.
It is widely used by those who are creating new businesses, especially those who want to invest in start-ups.
It must be built collaboratively and each of its 9 “fields” filled in by the team, always taking into account the best way to meet the needs of customers.
Its nine fields undoubtedly help to understand what business strategy is and how it must integrate the areas of the company to create an effective plan.