Knowledge of strategy and success of business
Knowledge of strategy would help in being successful in business in the following ways.
Knowledge of strategy enables the firm to define the organization goals and missions i.e. strategy enables a business to the general objectives and purposes that it intends to pursue. Mission and goals differentiates a firm form another in such aspects as market focus, products ideas e.t.c. Knowledge of strategy thus enables the firm to know the purpose for which it exist, the firm’s uniqueness, principle customers, principle products and the economic concerns to community and company.
Knowledge of strategy contributes to the success of business thorough proper allocation of resources i.e. it enables a firm to evaluate as to whether or not it have adequate resources as well as the technology so as to compete effectively in the market.
Adequate knowledge of strategy is important to the success of a business as it enables departmentalization and designing of the firm’s processes. This thus helps to define boundaries and in turn encourage mutual working relationships.
Also, adequate knowledge of strategy enables a firm to analyze its internal and external environment. This is important as it helps the firm to determine its strengths, weaknesses, threats and opportunities along the value chain. Strategy in this case enables a firm to determine its core competencies that provides it with real advantage e.g. the core competence of Microsoft is often enshrined in the technical know-how.
Business Model of Microsoft
The business model of Microsoft Corporation owns the computer application standards. Microsoft business model of owning computer application enabled it gain competitive advantage and thus triumph as opposed to its rivals such as the VisiCorp.The Microsoft thus concentrates on a business model of owning the operating systems and application programs such as the Excel and Word. It has adopted a business model that is largely dependent on software’s’ licensing access.
Microsoft has adopted such strategies as litigation and patent procurement which plays an important role of protecting its licensing programs as well as intellectual property. This business model coupled with growing market has made Microsoft to wrung huge profits over the years.
Business Model of McDonald
McDonald business model lies on the individual workers, the suppliers of goods and services and the franchisers. This business model has enabled the company to make huge profits as it continue to provide the clients with food services. The franchisers are the one who manage the MacDonald’s restaurants while the suppliers are concerned with providing food as well as packaging. The McDonald’s employees on the other hand provide the necessary support and facilitate delivery of food across the globe.
Competitive Advantage of Toyota
Competitive advantage entails the firm’s unique performance over its rivals and it is often termed as sustainable when the competitors are not able to duplicate for a long time. The vehicle industry is usually very competitive as it is associated with high profits and revenues and therefore, Toyota adopts a broad differentiation business strategy that is aimed at making a wide variety of cars so as to optimize value for various customers.
Toyota Company also maintains a relatively low cost structures as well as vehicle-pricing options aimed at generating maximum profits due to the fact that there is intense competition in the vehicle industry Toyota also partners with the suppliers particularly in developing countries thereby reducing the manufacturing cost and this has helped the company to deal with stiff competition from such firms as Honda.
Strategy entails the scope and direction of a firm over long term which help to accomplish the firm’s advantage through its resources’ configuration within a dynamic environment so as to meet the expectations of all the parties. Most organizations fail because they don’t set clear strategies on how their long-term objectives will be realized.
Strategy is usually non-routine and it is concerned with value creation. Strategy addresses the total business and it’s concerned with the long-term nature of a business. This implies that it requires to be first developed and then, the company should devise ways of implementing it.
Importance of strategy to an individual
Strategy usually acts as a guideline upon which an employee’s behavior is monitored. Strategy thus helps an individual to act within the organization’s accepted boundaries. Employees require to clearly understanding the strategy so as to enhance business growth. Strategy is important to an individual in an organization as it enhances forward-focused thinking. It helps individuals to understand and predict the changes in market conditions as well as customer needs.