Strategy, Business Information and Analysis

Strategy, business information and analysis

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Introduction

The increase in global competitiveness has largely been attributed to the high rate of globalization resulting from technological development that makes it relatively easy to transfer goods and information across the borders. The increase in competition has forced commercial firms across the globe to come up with strategies that will enable them create and sustain competitiveness. This has sparked a debate in the business world about the process that commercial firms should use in order to create and sustain competitiveness (Farjoun 2008). A number of scholars and practitioners agree that “strategy should only ever develop from detailed rational planning”.

This means that commercial firms should first seek information about the market, the opportunities and threats that are presented by the external environment and then analyze that information in order to come up with the strategy. Analysis of the external environment should also include the competitors, the activities they are involved in and how they create and sustain their competitiveness. The information obtained should then be compared with the resources that the organization has before coming up with the strategy (Patnaik 2012). This paper will critically analyze the statement “strategy should only ever develop from detailed rational planning” and offer supporting evidence where necessary.

Strategic Management

Strategy

Managers and especially the top managers are usually tasked with the responsibility of coming up with the strategic objectives of the firm they manage. This means that they have to come up with the objectives that the organization intends to achieve and offer some action plans on how those objectives are to be achieved (Whittington 2001). These action plans are known as strategies. There is still no common agreement in the business world about what really is strategy but...