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What is business Strategy? A business strategy is the plan, decisions, choices which guides a company to make profit and success. Business strategy provides the impetus for the commercial success and strategy is very essential for the success of business. It is equally important for a strategy to be communicated effectively and clearly; shareholders and stakeholders must perform their roles to implement it. Michael Porter (1996) has stated in his article "What Is Strategy" that strategy is created through a valued and unique position involving the different sets of activities. It is also right to say that business strategy is the determination of long term objectives and goals in an enterprise with the actions and resources allocation to achieve these goals. Owners and shareholders can measure the progress of their business by using the strategies. A successful business strategy provides the benefits to customers. The Cisco is a turbulent market and supplies the networks equipments and management for the internet. It has a strategy which is implemented for the clients to achieve their goals (Jeremy Kourdi, 2009:p.5).
Integrated Nature to develop a Corporate Strategy
Business needs the objectives setting to achieve the desired results. When objectives are set there is lack of cohesion between the strategies selected and objectives. Need for linking the knowledge users and knowledge producers by Tranfield and Denyer (2004); while Strakey and Madan (2001) also refer it as bridging the relevance gap. The corporate strategy of a company is influenced by the implications of technology strategies. It is therefore necessary to understand the implications for corporate strategy. Companies in market focus upon to discover the new strategies for profiting by the use of new technologies and increase returns from R&D. By the recognition of technological portfolios many companies are prompted to take the serious steps towards the effective management (Ashish et. Al, 2001 ). The success of knowledge management complements the objectives of the corporate strategy. The role of the KM is varied from customer to organizations. The organizations which are based on an innovative technology enable the right people to meet up and discuss the others. A mixture of collaboration and codification which determines the nature of business and their strategic imperatives depends upon the corporate strategies.
Four key dimensions of well-developed business strategies
When the business is looked holistically 4 most important dimensions are taken into account to make decision and actions. These dimensions include strategy, operations, marketing and finance. These dimensions are interrelated although being highly distinct. Marketing decisions are influenced by the strategic initiatives, while operational decisions are guided by the financial picture. New strategic opportunities are revealed by the marketing activities. These business dimensions are controlled by the different authorities in a company at different levels. Marketing officer covers the marketing and all the dimensions are controlled by the management with critical functioning. Let's look at the each dimension given as following.
Strategy Dimension answers many questions like core competencies of their leverage. What are goal, vision and mission of the business? How the brands are positioned and differentiated? All of these question fall with the strategy dimension of the business. This type of the dimension is foundation and hub of all other business dimensions. Due to complexity and nuance the strategy dimension is difficult to understand and business is not successful with techniques and tactics alone. Volkswagen has defined its long term goals with 2018 strategy as the world's leading automaker group ecologically and economically.
Operation the type of the four key dimensions covers the execution of plan and work assignment in a project and migration of the new infrastructure. The workforce is trained with critical tasks. The realm of execution and productivity are fully covered in this dimension as businesses have a sense of struggle and strategy at operations. Every team of business has its priorities to shift to a new project. The business with right stuff always show progress in their growth and grow faster as compared to those one who struggle at the execution.
Business related people chose to become the marketers or salespeople; because marketing equals a good amount of money. Marketing provides the way to get cash flow; hence cash flow is known the pulse of a business. Marketing brings the quickest results in a business and customers are attracted towards the sale of the company. A financial margin built makes the business choices. Volkswagen Group has experienced successfully the marketing operations in domestic market. When it leverages its experiences in domestic market; then exports its products to overseas market. Volkswagen exported the cars since 1949 to Netherland and other European countries. Within a short period Volkswagen became a company with an expanded leaning and achieved the scales in management and production after a good marketing in different countries of the world.
Revenue calculation and profit are related to finance in a business. An important question is asked about the overheads. These questions are answered by the top of heads in a company. People with no knowledge about the current and future income in a business face the difficult situation; finally cannot pay money for the bills (www.productiveflourishing.com). In 2007 Volkswagen has shown a big share in the capital market with large number of transactions.
Volkswagen has adopted a new strategy from the customer to production oriented through the process of trans-nationalization. Globalization has also made the Volkswagen more competitive and strategic. To enjoy the scope and scale the production of car is decentralized by the engineering (Bkhtiar et.al. 2005).
In this paper the concept of the successful business strategy is discussed with the different views. Other concepts of a successful business strategy are included in this paper which determines the success of a business in companies like Volkswagen group with reference to their strategic business development, its key dimensions and achievements.