Business environment changes as times change. The business environment is an ever-dynamic area. Various strategies help businesses adjust and adapt to environmental dynamism. The success of a business in a changing environment is subjective to the strategies. The business environment has two scopes concerned with strategy making. They include, first, matching between the mission or the scope and the business environment. Second, aim of competition between businesses that are striving to meet that match. Uncertainty is lack of information while expecting future competitive conditions. Environmental uncertainty is a lack of complete information regarding what developments will occur in the external environment.
With a slight noteworthy change in the level of uncertainty, the company ought to change its strategies to thrive and survive in the changing environment. Environmental uncertainty has an essential role in developing plans for the results, not only for resources in the business, but also consumers’ wants and needs as well as competition. As attributed to the dynamism of a business environment, managing uncertainty is, therefore, the main task of the organization developing means to make it less or avoid it. Since attention aims at the causes within the organization, environmental uncertainty calls for the business to come up with objectives and quality management that include consumer, supplies, technology and competition that and considered in decision-making by an organization. Finding out the level of environmental uncertainty, the management team gets aware of the possibilities of risk and can calculate the likelihood of the occurrence. Consumers are aware of the demands for better value of the products and services offered. Therefore, a change of business platform is inevitable.
Having a clear mission effects strategy and success
A mission is a statement that captures the purpose of the business’s goals, and the main ideas or philosophies on which form the bases of goals. It shows the main aim business is to work for the benefits of customers, employees, and the community. Clearly stated mission acts as the guide to the organizations and stipulate goal of the firm. A mission provides a decision-making guide for the business. Mission statements are the flame work on which the company develops strategies.
Such a mission is vital in the proper identification of the customer by clearly defining the vision and the culture of the business. In other words, products and services a company offers clear in a mission statement, therefore, defining consumers. A clear mission is important in showing the exact location of a business. Mission is the overall underlying philosophy that governs the management during making decision.
A clear mission will include organizational culture that is performance oriented, stresses teamwork, allow for risk taking, encourage innovation, and value the well-being of the people. Organization culture is important in mission of an organization as it is essential for making overall plans that involve decisions-making.
Strategic planning tool
Bourgeois, Jays says, that strategic planning is the organizational process of defining its strategies. During the planning process, the management decides to assign resources to meet the defined strategies. Understanding the current nature of the company and the open opportunities to capitalize is important. A company uses various strategic planning tools to reach the strategy. Examples include SWOT analysis, Porter’s generic strategies – differentiation, cost leadership, focused C/L, and Product life cycle. SWOT (Strength, Weakness, Opportunity, and Threat) is a tool whereby the participants brainstorm and evaluate the strength, weakness, opportunity, and threat to a business. The strength and weakness brainstorming look at the reasons within the organization. Possession of a certain skill is strength while the lack of the skill is a weakness. On the other hand, weakness and opportunity are factors outside the organization.
For a business to thrive and survive in the competitive and dynamic environment, the management should do a thorough SWOT analysis. Some of the weakness and opportunities include discovery in technology, change in population, policies, and competition. A company can have these as threats or opportunities. The company involves in harnessing the opportunities and mitigating the threats.
During strategic planning, effective SWOT-analysis provides the company with incredibly valuable information used as catalysts for developing the company. The information can also be used as the starting point for resolving the challenges that hold the company back. Fighting to meet the needs of a consumer is the key roles in an organization. The leaders of a business should have the knowledge to enable them make proper decisions that are in the best interest to the employees, consumers and the business itself. Using the proper planning tool is important for the business success in a changing environment. The business should develop a clear mission that captures all of business organization. All employees of a company should have the mission statement. Mission statement should be put in major places where it attracts interest of workers and consumers. Customers and employees should be reminded about the culture and values of the organization. How business satisfies the needs of its customers determines the success of the business. A business that does not meet the desires of its customers does not succeed.
Bourgeois, Jays. Strategy and the Environment: Academy of management, 2013. Print.