The Importance Of Strategy And Strategies

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Strategies are plans and visions a company constructs which will enable them to be successful and set apart from their competitive companies. In order for companies to be successful in developing a strategy they need to understand what forms the industry competition. There are five forces that form strategy. These include the threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of suppliers, and industry rivalry. A company can utilize these five forces to ensure higher profitability. The threat of new entrants is a result of the company showing high profitability. This is found to attract new entrants to follow in suit of creating a profitable company. The threat of substitutes is utilized to provide …show more content…
Execution is putting your plans into action to create a successful business (Favaro, 2015). According to a radio interview between Jesse Torres and Bahaa Moukadam, founder of SeeMetrics Partners, Bahaa Moukadam stated that “eighty percent of people do not succeed when it comes to the execution phase of their strategies.” Although the implementing stage and communication share a special relationship communication goes hand in hand with the execution phase as well. The people connected to the strategy is what makes communication so important in the execution phase. Everyone involved with the execution phase of the strategy needs to remain focused on the end goals. They need to be able to gather information and utilize it for analysis. Management during this time should be monitoring throughout the process to ensure goals are being met and meetings are being held to keep everyone connected (Torres, 2014). Along with keeping the objective clear and the focusing point Murray suggests that keeping tabs of the progress being made will lead you to a completion. Progress that is tracked throughout the execution will help ensure goals are being met and in a timely manner (Wall Street Journal, 2017). In the midst of putting the strategy into action to satisfy the plan you must take things into consideration so that failure is not an option. Management’s role in executing can cause havoc if there are emotions involved in this phase of execution. Managers can encounter issues in the work place if emotions start to play a role in the execution phase and they are unable to professionally handle it. The Wall Street Journal’s online management section mentions Alan Murray’s book Guide to Management which offers insight of positive actions leading to positive results. Murray believes when it comes to strategy and execution it is essential that management create clear objectives for employees to follow (Wall

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