Business Strategy for Firm Functioning

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This paper contains strategic questions, which are to clarify the most critical areas of activity for the company. The substantiations are given why it is necessary to pay special attention to the indicated aspects. The essential conclusions about the company’s current position, revealed by the results of the SWOT analysis, were taken into account. The purpose of the memorandum is to find strategies for the successful functioning of the firm.

Strategic Questions

People

Our company needs to stimulate the recognition of the brand. The more channels are used, the more chances the firm will attract new customers and keep those who have been with us for a long time (Casado & Erdmann, 2021). Therefore, the key strategic question is how new marketing channels will create a broader customer base? This step towards increasing the number of customers aligns with CSR principles as it aims to accommodate more opinions and ensure service delivery to a larger population.

Planet

What strategic decisions will most quickly lead to a decrease in the company’s negative impact on the environment? The anthropogenic impact on the environment became the subject of public discussion back in the 1970s (Robinson, 2021). Nevertheless, in the next decade, on the contrary, the time of consumerism came, further exacerbating the problems of protecting nature. Any company operating per the principles of CSR must help the environment, and because of this, it is necessary to find the most effective marketing methods in this area.

Profit

Each new organization, starting to work in the market, affects the redistribution of money within a niche. Therefore, over time, natural obstacles form in some of them – they set a particular framework for aspiring entrepreneurs (Karakaya & Parayitam, 2018). How to overcome potential barriers to market entry to increase the company’s profit further? However, as defined by the essence of CSR principles, social and environmental goals can coexist with profit ones.

Correlation of Strategic Questions with SWOT Analysis Provided

People

In the SWOT analysis carried out, it was indicated that the company has poorly established interaction with customers through social networks, which is unacceptable in the era of Internet technologies. There is also slow development of digital content and an undeveloped customer loyalty system, negatively affecting the efficiency of interaction with potential consumers of the company’s services. Therefore, it is necessary to expand their number with the help of new marketing channels.

Planet

According to the SWOT analysis, the company is already producing goods in environmentally friendly packaging. However, the prevailing trend towards reducing environmental harm obliges companies to maintain an optimal state of nature much more intensively than ever before (Żelazna et al., 2020). Using marketing channels will help inform customers that the company is operating in an environmentally friendly manner. However, it is required to assess which measures will be the most effective.

Profit

Increasing sales and revenue is a sign that the business is moving in the right direction. As noted in the SWOT analysis, already at this stage, the company captures new market segments not previously taken into account. However, there is a risk that investors will turn their attention to other projects that are more committed to CSR principles. A gradual and wise entry into new markets, taking into account potential barriers, is essential.

Key Performance Indicators for Strategic Issues

Wrongly chosen key performance indicators will lead to pointless labor and financial costs. KPIs are metrics by which the organization can track and measure its performance. It is calculated based on revenue, sales profit, the cost of production, number of customers, working capital, and other metrics. They are used in sales, marketing, advertising, and many other business processes to achieve better results. It is necessary to designate which indicators will be most important for each category.

People

Since one of the main goals in the “people” category is to use new marketing channels, the metric “volume by channel” should be used. It allows the company to control through which media the most significant number of customers comes and how this measure changes over time. That is, one can estimate, for example, the difference between the number of visits in spring and summer.

Planet

In the “planet” category, attention should be paid to the coefficient of the products and services’ impact on the environment. Since products and services are broad concepts, each specific item must be assessed. For example, the measurement of the environmental impact of packaging should be based on the formulas used in other studies (Molina-Besch et al., 2019). Evaluation of such an impact will make it possible to assess how the company manages to function following modern environmental requirements.

Profit

To estimate revenue, the following formula should be used: net income = sales revenue – total costs. It shows how effectively the business converts sales into profits. A low value means a high risk that a downturn in sales will nullify gains; a high value determines the activity’s success. Since the goal of any company is to make a profit, attention is required to assess such performance indicators.

TBL-Related Aspects

TBL creates a system of interaction between clients and the company aimed at mutually beneficial and practical cooperation, which is its functional purpose. Attention to specific aspects such as “people,” “profit,” and “planet” can have a significant impact on a company’s success in the market. Marketing campaigns should be carried out following the identified needs of the firm, as defined in the CBOT and TBL analyses. Moreover, with the correct setting of goals and ways to achieve them, the company can significantly increase its sales.

References

Casado, J. M. & Erdmann, A. (2021). E-commerce customer attraction: Digital marketing techniques, evolution and dynamics across firms. Journal of Promotion Management. 27(11), 1-19. Web.

Karakaya, F., & Parayitam, S. (2018). Market entry barriers and firm performance: Higher-order quadratic interaction effects of capital requirements and firm competence. International Journal of Markets and Business Systems, 3(2), 121-140. Web.

Molina-Besch, K., Wikström, F. & Williams, H. (2019). The environmental impact of packaging in food supply chains—does life cycle assessment of food provide the full picture?. The International Journal of Life Cycle Assessment, 24, 37–50. Web.

Robinson, C. (2021). The history and importance of Earth Day. University of Colorado. Web.

Żelazna, A., Bojar, M., & Bojar, E. (2020). Corporate social responsibility towards the environment in Lublin Region, Poland: A comparative study of 2009 and 2019. Sustainability, 12, 1-13. Web.

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BusinessEssay. 2023. "Business Strategy for Firm Functioning." January 10, 2023. https://business-essay.com/business-strategy-for-firm-functioning/.

1. BusinessEssay. "Business Strategy for Firm Functioning." January 10, 2023. https://business-essay.com/business-strategy-for-firm-functioning/.


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