A Business Strategy Defined

What does it mean to have a business? A business is simply defined as an existing entity or association engaged in commercial, administrative, or professional activities for profit. Businesses may be either for-profit or non-profitable entities that function to meet a social purpose or further an educational cause. The activity of a business may be physical, political, cultural, or social. In some cases, businesses are sole proprietors, partnerships, or corporations. A company may be run by one or more owners, all of whom hold the power to direct the business’s activities.

Most businesses engage in some type of commerce or trade to generate their revenue. Some businesses are directly involved in the production, transportation, and sale of commodities; others are involved in the production, processing, and distribution of goods; and still others are involved in the production, trading, and sale of services. In addition to the commerce-related activities described above, some businesses engage in financial activities like borrowing money, creating stock, issuing debt, receiving loans, making purchases and selling goods and services. In order to increase their profits, all of these types of businesses must develop and implement an effective business strategy.

A business strategy refers to a plan for operating a business efficiently and effectively. It combines objectives and strategies necessary to realize the business needs identified through the business analysis. A good business strategy should lay down the basic directions for the company’s growth and development. It also identifies the resources required for the operation and support of the business. A thorough understanding of the resources available to the company and its relation to the company’s objectives is an essential element of developing a sound business strategy.