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Strategy is essential, but many businesses still not build strategies, according to you why? How is business if it does not have a strategy Taking example and explain PREAMBLE Business strategy is of paramount importance to the survival and development of enterprises Business strategy set big goals, which need to mobilize appropriate resources including short and long term to achieve the target Strategic management process helps organizations find purpose and direction It causes managers to consider and determine the organization to follow which direction and when to reach certain position Perceiving the desired results and goals in the future to help managers and employees understand what needs to be done to achieve success This will encourage both objects on achieving short-term achievements, in order to better improve longterm interests of the organization Environmental conditions that organizations face are changing always The rapid changes often create surprise opportunities and risks Use management strategy helping managers aimed at opportunities and risks in the future Although the planning process does not preclude the administration expected or predicted environmental conditions in the future Meanwhile, the strategic management process forces administrators to analyze and predict the environmental conditions in the near future as well as in the distant future Thus evident that future environment that managers are better able to grasp the opportunity, take advantage of the opportunities and reduce risks related to environmental conditions Thanks to the strategic management process, enterprises will be associated with the proposed decision with the relevant environmental conditions Due to the volatility and complexity of the environment is increasing more and more companies try to gain the initiative or passive attacks The decision is an effort to predict environmental conditions and then to affect or alter the prediction that achieve business objectives Decision of passive attack is forecast environmental conditions in the future and adopt measures to optimize the action of the business position in that environment by avoiding the problems were foreseen and prepared more to be done by stealth opportunities DIFINITIONS OF BUSINESS STRATEGY Business Strategy is the direction of an organization, it specifies the types of products and services that make business, scope of the organization, resources, production, profitability and business prospectscareer Strategy is: - Where is the business trying to get to in the long-term (direction) - Which markets should a business compete in and what kinds of activities are involved in such markets (market, scope)? - How can the business perform better than the competition in those markets (advantage)? - What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete (resource)? - What external, environmental factors affect the businesses' ability to compete (environment)? - What are the values and expectations of those who have power in and around the business (shareholders)? Strategy at different levels of a Business In any organization, strategies exist at several levels - ranging from the overall business (or group of businesses) through to individuals working in it Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business Corporate strategy is often stated explicitly in a "mission statement" Business Unit Strategy - is concerned more with how a business competes successfully in a particular market It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc Operational strategies - related to each department in the enterprise will be held as to how to implement the strategic direction at the corporate level and each department in the enterprise Therefore, the operational strategy focuses on issues of resources, processes and people, etc How to control strategy? - Strategic Management In the broadest sense, strategic management is the process of implementing "strategic decisions" - that is the decision to answer the questions above In fact, the complete process of strategic management consists of three parts are described in the following chart: Strategic Analysis Strategic Analysis is the analyzing the strength of businesses' position and understanding the important external factors that may influence that position The process of strategic analysis can be assisted by a number of tools, including: PEST Analysis - a technique for understanding the "environment" in which a business operates Scenario Planning - a technique that builds various plausible views of possible futures for a business Five Forces Analysis - a technique for identifying the forces which affect the level of competition in an industry Market Segmentation - a technique which seeks to identify similarities and differences between groups of customers or users Directional Policy Matrix - a technique which summarizes the competitive strength of a business operations in specific markets Competitor Analysis - a wide range of techniques and analysis that seeks to summarize a businesses' overall competitive position Critical Success Factor Analysis - a technique to identify those areas in which a business must outperform the competition in order to succeed SWOT Analysis - a useful summary technique for summarizing the key issues arising from an assessment of a businesses "internal" position and "external" environmental influences Strategic Options This process involves understanding the nature of the expectations of the capital contribution (the "basic principles") to identify strategic options, then evaluating and selecting strategic options Strategic Implementation This is often the hardest part Once a strategy has been analyzed and selected, the task then is to translate it into action in the organization WHY NEED TO ESTABLISH BUSINESS STRATEGY? Business strategy is necessary and determines the success of business Oriented business strategy to create, motivate and reasonable allocation of resources to achieve the goal set by the corporate management Business strategy is understood as a unified comprehensive integrated plan of the enterprise It gives the trends in the long run, confirming the major objectives of the business, outlining the key resources of the business and suggest ways to deal with the changing business uncertainties often encountered in the competitive environment A business strategy ensures focus across the entire organization Employees want to know they are working towards larger goals and how their actions contribute to these goals, customers want to know what you stand for and where you are taking your business to determine if you are a strong and dependable long-term partner, partners want to know where they fit in to your ecosystem, and the overall organization needs to be working together towards common goals to optimize the business Building up a Business Strategy will bring following benefits - Provides the opportunity to look to the future of the business as opposed to the current day-to-day running of the business or a historical performance review of the business In general, we not spend enough time thinking about the future of the business as we are mired down in the day-to-day activities This process will ensure you take the time to that - Aligns the organization around the activities that are important to the business - Communicates to all stakeholders where the business is going, what the focus is and where resources will be allocated - Provides a framework for securing funding and approval for initiatives that support the business strategy - Provides a framework for detailed business planning across all business units and departments in the organization - Facilitates the required changes in the organization - The rapidly changing business environment and creating opportunities as well as risks and future business strategy will help businesses take advantage of good opportunities and reduce risks related to the business environment truog Business strategy helps businesses better prepared to cope with and master the movements of the market Many businesses still not develop strategies for them as because of different reasons as followings: - Thinking of leadership tenure, and short-term goals like creating new things, breaking the old mark; - There is no complete information on policies, laws and regulations and policies of the State of Vietnam constantly change and adjust, inconsistent, non-transparent information; - The rapid change difficult market analysis and assessment, not to collect and analyze information objectively and accurately - Leader is so absorbed with daily work - Do not understand what the strategy is - No capacity to build a strategy - There are not resources to implement the strategy - Business getting success and subjective to think that no strategy can succeed - Not having the foresight to business but just small - Small scale, there is no clear direction - Want to business flexibly - Many competitors not so no need to Companies avoid strategic choices for many reasons Conventional wisdom within an industry is often strong, homogenizing competition Some managers mistake ‘customer focus’ to mean they must serve all customer needs or respond to every request from distribution channels Others cite the desire to preserve flexibility Many reasons will explain that: First of all, threats emaning from outside a company because of the rapid growth of technology or/and the behaviour of competitors Companies not have time to think of a long-term strategy It can become too much for managers; as good results are longterm and not short short term Google did not become what it is today in years It took them 10 years and counting! Most managers nowadays not run a company for more than years They know they could get the sacking first year in office Second of all, threat to strategy often comes from within A strategy is undermined by a misguided view of competition, by organisational failures, and the desire to grow Some Managers want to as well as their competitors They would resist any change or oppose any long-term strategy that their company needs They are driven by short term results that could boost the company image for now in search for angel investors and banks Other managers, will think about growing as twice and as fast as their competitors, not knowing that their competitors have been in the market long before them Expansion, it's the motto of managers of today The pursuit of operational effectiveness is another pitfall Managers are under increasing pressure to deliver tangible, measurable performance improvements Caught up in the race for operational effectiveness, many managers simply not understand the need to have a strategy Without strategy business can not go to expected objectives! Having no business strategy will make business easily distracted, disoriented Business leaders will conduct business in term thinking, ease-mindedness to break out the old to make a personal imprint Let’s say you discovered a new process that could revolutionize your business Lets say this process enables you to more with less and allows you to engage all stakeholders efficiently Lets say this new process holds the promise for the future of your business That being said would you simply use the process or plan to use the process effectively? If you decided to simply use the process without planning for its use then the probability of achieving the potential it offers is slim to none It would be like driving without a map, starting a trip with no destination in mind or defined routes to get where you want to go Even if you know where you want to go without a plan you may end up going nowhere Going nowhere is the best way to describe the majority of organizations using social media In Vietnam there are literally hundreds of thousands of businesses are operating and each year thousands of new business was born but of this there is little common business survival and sustainable development, left many of which have not can stay on the market The causes of this reality is also due to the managers not focus on the business to determine specific steps forward into the future Among the typical business of success thanks to good strategy can be seen as Trung Nguyen Café, FPT corporation or corporation of Viettel telecommunications These companies were very successful in the domestic market and gradually expanding foreign markets These enterprises have been stepping firmly Besides the successful business thanks to good strategy many businesses actually were at a standstill, especially during the last two years there are many businesses in the area of real estate or securities busted, this is the result of the investment process is with out a strategy A recent example in the fisheries sector is Binh An Company, based in Can Tho, very typical for the lack of strategy in business investment, the investment spread, no principle has led to insolvent and bankrupt Or maybe state corporations such as Vietnam Shipbuilding Industry Corporation - Vinashin, the Vietnam Maritime Corporation - Vinalines, the cause is generally no clear business strategy, consistent development of multi-industry by seeing immediate boon (investment in the field of real estate, finance, etc.) If this business is business strategy clearly and consistently, they will not fall into the investment into risky areas such as real estate, finance, banking, although can bring high profits at the time of investment, but will not be sustainable and will make these businesses reduce resources for their main business field strengths And the fact that when businesses not have business strategy or fail to comply with the proposed strategy is likely to lead to collapse or failure when unfavorable market fluctuations CONCLUSION In fact many businesses, especially small and medium enterprises, very little attention to strategic issues, not even identify themselves a strategy The underlying cause is not aware of the role of strategy The problem is not only large business should have a strategy but small businesses not We need to ascertain that any organization, any business will need to have a strategy The presence of an official strategy in the enterprise is desirable or not but it depends on the fundamental role of cognitive strategies as well as scientific knowledge of the strategy business management The strategy needed to focus the efforts of enterprises and strengthening the alignment of activities Without strategy, the business is a collection of individuals, each will conduct and perform the tasks themselves by their own way But the fundamental problem of the organization is the handling of a collective work and how to link the individual activities is strategic Based on the direction set out, a reasonable policy for a business is to identify what each member of the organization needs to and how they work in combination to achieve the highest efficiency References: The lectures Strategic Management – Pro Dr Vu Thanh Hung, National Economics University www.SAGA.vn - AuWa | Theo Doanhnhan360  ... opportunities etc Operational strategies - related to each department in the enterprise will be held as to how to implement the strategic direction at the corporate level and each department in the enterprise... enterprise Therefore, the operational strategy focuses on issues of resources, processes and people, etc How to control strategy? - Strategic Management In the broadest sense, strategic management... standstill, especially during the last two years there are many businesses in the area of real estate or securities busted, this is the result of the investment process is with out a strategy A recent example