Business strategy
and Financial Performance of construction related
industries
Main objective of any business
industry is to maximize business and enhance profit for this,
businessmen prepare strategy. Business strategy was successful or
not this is judged by financial performance of company. There are
various type of business strategy adopted by companies like:-
- Enhance technical competency by
research and development and take an edge over competitors.
- Aggressive marketing strategy to
make its product popular and prime.
- Use Branding so that its product
can be identified separately
- Expansion in different and various
locations.
- Use different products and
associated services.
- Provide after sale services
- Use of social networking
- Collaboration with other business
(other than competitors)
- Use of advance and attractive
technology for consumers.
- Others –Register in trade
directories, create website etc.
Effect of these strategies over
financial performance: -
- Enhancement of sales
- Increase of customer base
- Profit maximization
- Maximum Resources utilization
- Improved input output ratio
- Increase of key ratios like return
to assets, return to capital etc.
- Easy loan availability and
increased credit period.
- Easy dividend payments
- Less labor unrest.
- More capital involvement and
others.