BUSINESS SUSTAINBILITY Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    487

BUSINESS SUSTAINBILITY 1

Business Sustainability

Strategy can be defined as the actions taken to achieve a set of goals that are associated with successful results (Ansoff, 2010). In a business perspective, strategies have become an integral business management tool and are thus seen to relate to a business performance in terms of value creation and managing the values embodied in various business capitals. This report will identify and discuss some of the challenges for more sustainable strategy making practice, in terms of developing more adaptive approaches to emerging challenges and in strategising to achieve integrated objectives.

Should a strategy be made open or kept secret

By making business strategies open, it is possible to know what the company is trying to achieve. Prospective investors tend to hesitate when business strategies and future firm’s position is unclear. On the other hand, free dissemination of firm’s strategies may be easily interpreted as being competitive for rival firms. In most cases, strategic managers argue for at least some degree of privacy.

Should strategy making use a Top-Down or Down-Top approaches?

Whether to use a top-down or down-top approaches in strategy making process poses a big challenge to most organizations. Research has significantly emphasized the role of various level managers in strategy formulation. According to Nichol (1992), strategy synchronization requires a team effort and requires contributions from both middle level and senior level managers (Parnell, 2003).

Degree of Risks

Strategy formulation is about making choices. There are choices that may be more risky than others. Each strategy has a varying amount of risk associated to it. It is therefore inevitable for managers to be highly skilled at information processing in order to avoid risks.

Strategic commitment versus strategic flexibility

A business may opt to commit to a certain course for an extended time period maintaining a clear brand image. On the other hand a firm can remain flexible so that it does not become committed to technology or products that may later become outdated (Parnell, 2003). Commitment to a set of strategic objectives can have positive results by focusing employees on a clear goal and enhancing organizations predictability among stakeholders and customers. The key point for strategic managers is to identify parameters that define a firm and enhance flexibility within them (Pernell, 2003)

Strategy management remains an intuitive undertaking. Strategic managers still face some critical judgement questions when formulating strategies for their organizations. The challenges faced in strategy making may be overcome by basing the strategies on a philosophy backed by experience, research and reason (Pernell, 2003).

References

Parnell, J. A., and Carraher, S. (2003). The role of effective resource utilization in strategy’s impact on performance. International Journal of Commerce and Management, 13(3), 1-34.

Nichol, R. L. (1992). Get middle managers involved in the planning process. Journal of Business Strategy, 13(3), 26-32.

Ansoff, H. I. (2010). Corporate strategy: An analytical approach to business policy for growth and expansion. New York: McGraw-Hill.