Factors that Shape A Company’s Strategy
Many situational considerations enter into crafting strategy. Crafting Strategy is the first “season” in an organization’s “annual” cycle. These factors vary from situation to situation. Anyway, these factors are as follows:-
Societal, political regulatory and citizenship considerations: All organizations operate within a society. Hence, social expectations, values, and ethical considerations play a vital role in shaping a strategy. Moreover, economic, societal, political, regulatory, and citizenship factors limit the strategic actions a company can or should take.
Competitive conditions and overall industry attractiveness: A company’s strategy should be tailored to fit industry and competitive conditions. Various competitive conditions like price, product quality, performance features; service, warranties, and so on play a vital role in shaping a strategy.
The company’s market opportunities and external threats: A good strategy aims at capturing a company’s best growth opportunities. It also aims at defending against external threats to its well-being and future performance.
Company resource, strength, competencies, and competitive capabilities: One of the most crucial strategy-shaping considerations is whether a company has or can acquire the resources, competencies, and capabilities needed to execute a strategy proficiently.
The personal ambitions, businesses philosophy, and ethical beliefs of managers: Various studies indicate that manager’s ambitions, values, business philosophies, attitude toward risk, and ethical beliefs have an important influence on strategy.
The influence of shared values and company culture for strategy: A company’s policies, practices, traditions, philosophical beliefs, and ways of -doing things come together to create a distinctive culture. Culture can dominate the kinds of strategic moves a company considers or rejects.
These are the various dominating factors that shape’s company’s strategy.