The major strategies and policies that give an overall direction to operations for a business enterprise (and, with some modification, for other kinds of organizations as well), are likely to be in the following areas,
Growth strategies give answers to such questions as these: How much growth should occur? How fast? Where? How should it occur?
Every business enterprise and, for that matter, any non-business enterprise must have a clear strategy for financing its operations. There are various ways of doing this and usually many serious limitations.
Organizational strategy has to do with the type of organizational pattern an enterprise will use. It answers practical questions. For example, how centralized or decentralized should decision-making authority be? What kinds of departmental patterns are most suitable? How should staff positions be designed? Naturally, organization structures furnish the system of roles and role relationships that help people accomplish objectives.
There can be many major strategies in the area of human resources and relationships. They deal with such topics as union relations, compensation, selection, hiring, training, and appraisal, as well as with special areas such as job enrichment.
Strategies in this area can hardly be independent; they must support other major strategies and efforts. They must also be designed in the light of the companyâ€™s type o-f business, its closeness to the public, and its susceptibility to regulation by
government agencies. In any area, strategies can be developed only if the right questions are asked. While no set of strategies can be formulated that will fit all organizations and situations, certain key question will help any company discover what its strategies should be. The right questions will lead to answers. As examples, some key questions are presented below for two major strategic areas: products or services or services and marketing. With a little thought, you can devise key question for other major strategic areas.
Products or Services
A business exists to furnish products or services. In a very real sense, profits are merely a measure — although an important one — of how well a company serves its customers. New products or services, more than any other single factor, determine what an enterprise is or will be.
Marketing strategies are designed to guide managers in getting products or services to customers and in encouraging customers to buy. Marketing strategies are closely related to product strategies; they must be interrelated and mutually supportive. As a matter of fact, Peter Drucker regards the two basic business functions as innovative (e.g. the creation of new goods or services) and marketing. A business can scarcely survive without at least one of these functions and preferably both.