Question

Identify the key factors business owners should take into consideration before redefining the business strategy. How tools are used in the formulation of strategy and who is responsible for implementing strategy in a business? How are companies integrating Corporate Social Responsibility into the strategic planning process.

Answer 1

To make your organisation position in the industry in a strategic manner, many key considerations and factors should be taken care before redesigning yoour strategy. The CEO and all the top level employees who are in direct relation with the external environment and would then establish the necessary strategies for the organisation. The key factors taken into consideration are:

1. Cost: The one most important factor that is needed to be considered before implementing the strategy is the cost factor. Achieving the differential and focus strategy requires huge cost investment in the company to study the demands and acquire the most differential elements to achieve that strategy. Thus, cost and funds are required to achieve the strategy thereby.

2. Structure: Another factor is your company's own structure. For example you cannot achieve cost leadership strategy in the market while having a product specialised structure as that requires huge cost overlay. Thus, to achieve that strategy you need a functional structure in your organistaion as that minimises the cost. Hence, before implementing the strategy you should have a proper definite structure.

3. Resources: At last, the resources that are you using should be effectively and efficiently required, trained and used. All the resources of your organisation being it human resource, informational resource or machines etc should be effectively used to channelise their efforts and optimum utilise their full potential to make them achieve the strategy all together to survive in thr market.

Corporate Social Responsibility or CSR is one of they key factor that is nowadays being implemented and adopted in every strategical planning phase of the organisation. CSR refers to all the activities which are undertaken to develop an essential goodwill in the industry and have a strong hold over the competitiors. Maintaining good relationships with your stakeholders like customers, suppliers, shareholders and all the parts of the society shows that how ethical and honest the company is. These elements helps the company to position a good image in the minds of the customer and thus, would make a strategical impact in the market to gain demand, name and customer for achieving the sustainability factors.