Comparisons on Strategy Formulations Between Small and Big Business Essay Example

risky, as it involves both the development of new products and entering unfamiliar markets. Therefore, there is a pressing need for strategic orientation to ensure effective operation. The main purpose of this essay is to examine growth strategies for firms, including theoretical aspects and strategies for both large and small companies. According to R. Nag, D.

According to Hambrick (2007), strategy is a plan that establishes long-term goals and objectives for a company, determining the allocation of resources required to achieve them. Strategic options are determined by comparing the company's capabilities and resources, considering an acceptable level of risk. The development of a business strategy must address three key questions: which economic areas should be developed, what are the capital requirements and available resources, and what potential impact will be made in selected areas?

Strategy has several important characteristics: 1) It doesn't require immediate action but sets an overall direction for growth and strengthening. 2) The formulated strategy is used to develop strategic tasks and search techniques, focusing on specific areas or features while disregarding incompatible possibilities. 3) Once events lead towards desired development, this particular strategy becomes unnecessary. 4) During formulation, it's impossible to anticipate all possible outcomes during implementation, so generalized, incomplete, and inaccurate information about various options is crucial.The original strategy's effectiveness can be questioned with more detailed information, so obtaining feedback is important for promptly reformulating the scheme. The implementation process has two phases. The first phase, known as the strategic planning procedure, involves developing various schemes such as basic business strategy, functional schemes, and individual tasks. The second phase, referred to as the strategic management procedure, requires executing the strategy over time

and reassessing policies in light of new circumstances. Strategic planning follows a systematic and logical process based on rational thinking.

Planning for businesses involves various skills such as prediction, investigation, calculation, and alternative selection. The formulation of plans should follow a hierarchical structure, which can vary in levels of planning, thoroughness, and coordination depending on the company's nature and scale. Consequently, a small organization may have one plan while a larger one may have multiple levels of implementation.

Let's analyze these points further. The assessment of the current (bing) scheme is initially carried out in the early phase, which involves evaluating internal capabilities. This scheme acts as the basis for organizational effort and requires developing strategic plans at both the enterprise level and within individual departments. Each strategic plan naturally contributes to a comprehensive business strategy by consolidating them all.

The core of any strategic program is the company's fundamental strategy, which is chosen by the company's management after reviewing and analyzing information from previous steps. Planning for risk is an important aspect of the strategic plan. The ultimate goal is to maintain a high level of environmental stability and minimize losses caused by disruptions.

Western companies are increasingly adopting centralized decision-making and responsive crisis management systems as part of their backup strategies. This shift is driven by the growing complexity of potential disruptions, which makes it impossible to predict all possible situations. Strategic options are an integral part of the overall strategy and involve various courses of action. It is important to involve employees at all levels of the organization and consider solutions generated through strategic planning when developing a strategy.

Hence, it is essential to coordinate the participation

in the planning of a scheme panel treatment. Additionally, it enables management to consider numerous alternatives. However, consensus in group decision-making is significantly lower than the authority's unity. Consequently, a panel treatment is usually conducted to reach a final decision regarding the growing scheme.

The purpose of the initial scheme is to oversee growth in order to provide businesses with access to optimal efficiency. Leadership is vigilant in its approach to accelerate development and ensure the identification and elimination of constraints, in order to maintain a competitive position in the market. As noted earlier, management must be prepared for challenges in production, administrative conflicts, strained financial conditions, high costs, and lack of profitability during this first stage. However, the speed of this stage and progression to the next scheme is one of the goals of the initial scheme.

The incursion scheme is a guiding strategy that aims to penetrate the market more deeply and accelerate revenue growth. It may involve acquisitions, mergers, and long-term plans to enhance operations in all areas of the business. This includes strengthening financial positions and upgrading fixed assets through research and development. Once these objectives are achieved and internal reorganization is completed, the company can move on to the next strategy.

The purpose of the accelerated growth scheme is to maximize the utilization of both internal and external opportunities. This stage of growth should be extended for as long as possible, as it allows for the full utilization of resources and leads to an increase in gross growth that surpasses revenue growth. Additionally, it involves strategic planning for gaining market share. However, during the phase of accelerated growth, negative tendencies may arise within

the organization. Therefore, one of the objectives of this scheme is to identify and address these issues as early as possible. If the problems cannot be solved, the management company of this scheme will smoothly transition to implementing the next scheme.

The purpose of the passage scheme is to ensure a smooth transition from a period of accelerated growth during the reorganization and restructuring of the enterprise to a new rhythm of growth as quickly as possible, without prolonged stagnation. The scheme includes savings, discontinuation of new productions, in-depth analysis of the company's situation to reduce costs, improve product profitability, and restructure the management system.