A vital factor in a company's success is a proper business strategy and good communication among its employees.
Business strategy describes how a particular business intends to succeed in its
chosen market place against its competitors. It therefore represents the best
attempt that the management can make at defining and securing the future of that
business.
Each separate 'business' should have its own business strategy so that a multiple business enterprise will have a number of separate business strategies. This raises the practical question of how to define the scope for each such business. There is a need for a balance in choosing the scope for each 'business'. If the scope of the business is defined at too low a level, the work becomes too much. If the level is too high, the analysis loses its rigour. In practice, the problem is usually that this question of scope is never clearly posed, not that it would be difficult to provide a workable answer.
The needs of customers are one major driver of business strategy. It is essential to
understand the needs and to identify how to satisfy these needs more fully, more
exactly, or more profitably than competitors.
Business strategy is therefore about beating competitors in meeting customer needs. It follows from this that a deep analysis and understanding of customers' needs is essential to produce a good business strategy. It is necessary to understand the nature
and scope of customers' needs, how these needs differ between different groups or
individuals, and how these needs are changing.
The overall goal is to realize the strategic intent of the business. Objectives should not all be financial. It is important that some objectives set measures that relate to the fundamental nature of the business and to meeting customer and stakeholder needs.