Why is strategy important to business

Share on Facebook Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.

Why is strategy important to business

Introduction In recent years, all around the world fierce competition has emerged because of some concepts such as globalization, fast technological changes, new consisted markets and changing customer expectancies and the competition has become more and more overwhelming.

So businesses are forced to think strategically and Why is strategy important to business decisions by using strategic planning more.

Indeed, while strategic management was known and used in private sectors, some transnational companies, big companies and holdings in the s, today many businesses use it as a means of achieving their objectives Aktan,p.

Today, the main goal of businesses is developing strategy and techniques which present the best service and production in a most productive and effective way and so it is aimed to reach goals and aims in an optimal and productive manner.

That is possible with having a long-term mission to be able to adapt their business in the rapidly changing world. This process should be realized with a prudential and longtime perspective.

That part includes preparation of long-termed aims, goals and priorities of strategic management operating budget, making resource allocation according to these priorities and, in the end, accountability Mediha Yalcin, In this sense, strategic management is a prudential effort.

The manner in which is perceived in the future is mentioned with vision and prudential efforts are objectified with the mission. Being opportunist provides an advantage for the businesses in a fierce competition environment.

The Mission

On this note, the strategy is about sustained choices. Plans which carry out strategic thinking in practice, involve extent, aim, sources and period of control in the business.

It shows formulation of aim, goals, and tools to be used systemically Okur,p. This situation paves the way for coming into prominence of strategy concept all around the world, especially for multinational businesses.

The concept is military sourced. Having its foundations in military practices, strategy implies the use of armament actions that are going to reach to determined goals identified by decision makers. If it is necessary, it will direct military, political, economic and moral powers in a coherence.

Forming a strategy is the responsibility of top management of business.

Why Business Strategy Is Important

However, after the strategy has been formed, in every step of the prepared plan, a manager who is related that part is responsible. It is the subject that each manager according to his authority makes a range of tactic decisions about the implementation of the plan Bozkurt and Ergun,p.

In the content of the strategy concept, there are long termed thinking, good perception of the environment and well identification of the target.

Why is strategy important to business

Accordingly, when it is said strategy, it is mentioned as the aim and goals which have clear vision, prudential and planned ways and techniques. Strategy word transferred by French to Turkish does not have the exact equivalent in Turkish.

In other words, it means the determination of ways to reach quantitative goals which are stated with numbers in anticipated time Garih,p. Indeed, strategy is a military oriented concept used to mean an aim of gaining a battle or a conflict in a war. However, today we use this concept in every area of our life.

The main research topics of strategic management are forming a strategy, determining the best strategy among other options, more strong and effective strategies implementation towards to opponent strategies in the competitive markets Aktan,p.

Even in the smallest of businesses, determination of policies is created by the one who knows or guesses all the opportunities and conjuncture of a particular market.

In business, primary strategies and strategist are needed to make real policies that have the characteristics of aim. Strategies, by gathering available numeral opportunities, produce strategies which are going to realize those policies. In that process, if businesses act based on top manager or under the presidency of top manager a business executive committee rather than board directors, their prospects are going to be high Garih,p.

Why business strategy is important? Because it allows businesses to examine how they are preforming and what systems are in place to keep them sustainable. There is a huge opportunity for CEOs/Owners to excel in performance with a well-crafted strategy. Bottom line, execution without strategy is aimless. Let us know what you think of these five reasons strategy is important and share with us some of your own experiences. We would love to hear from you. Entrepreneurs are aware what a gold mine a successful and comprehensive strategy can be for their business. Why Strategy is Important In Business If you are wondering why you should pay close attention to your strategy, check out the following benefits.

Also, it is pointed out that today the important thing is not the strategy but the using strategy concept. It is emphasized that a business may have multiple strategies.

The strategy concept as well as being a current concept in the defense area, it has been used in management for a very long time. Strategy in management science shows the ways of reaching the goals of the businesses. Especially in management science, business strategies towards their competitor cause to rise first strategic planning and then a discipline called strategic management Aktan,p.

In this sense, to reach the determined goals, strategy consists of primary aims, goals or purposes, important policies, and plans.

Strategy in business management is the fullest extent of clarifying the confusion that occurs among the different functions of the business, regulating determined characteristics of general aims and selective decisions about reaching to optimum in an economic environment.Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals.

Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.

Why business strategy is important? Because it allows businesses to examine how they are preforming and what systems are in place to keep them sustainable. Strategic management is important because it allows an organization to initiate activities, influence activities and be proactive rather than reactive in its strategy so that it has full control over its own destiny.

The importance of a corporate strategy hinges on its being an effective means to allocate a company’s resources, establish business expectations and improve a company’s competitive position, as well as increase shareholder value to something beyond the sum of its physical assets.

The question of why strategy is important to business is compelling to say the least. There are a number of reasons why strategy can and often does determine the success, growth or failure of a business.

In our study formed around this basic thesis, first we will make a conceptual analysis related to strategies, then refer to the importance of strategic management and we will examine strategic management contributions to businesses and finally, we will mention the importance of connection between strategy and culture of an organization to be enable more success in the strategic management process.

5 Reasons Why Strategy is Important - Albu Strategy Management