EXCPR™: FIVE ELEMENTS PROVIDED BY STRATEGY TO COMPANIES

FIVE ELEMENTS PROVIDED BY STRATEGY TO COMPANIES

Today's companies are investing further in strategic process, applying their different types for the primary reason of staying in the competition that the markets are currently experiencing. The existence of open markets and the entry of technology of various kinds into businesses have a significant impact on the entry of more companies into the markets to compete, and the exit of some of them!. The results of the research conducted by EXCPR Co. indicate that only 21.4% of the companies listed on the Kuwait Stock Exchange managed their executives to overcome the volatility and risk of the market - recently - and achieve good financial results, thanks to the presence and construction of a good strategy. Strategy is become a fundamental need that must be achieved for various reasons, including achieving the wishes and needs of stakeholders, geographical expansion and the search for the best regional markets, increasing the size of competition, achieving the best results, in addition to achieving the desired added value.

STAKEHOLDER REQUIREMENTS

The first additions to the company's strategy are the construction of the company's internal structure, and its solid construction. This addition is achieved by meeting the needs and desires of stakeholders – which affect the company's business, including customers, companies and factories supplying machinery and raw materials, governments and international regulations, market competitors, shareholders and investors, small investors. In the company, employees, team, banks, financial institutions, etc. when the company can meet the needs of that group, it will increase production capacity and business efficiency, increase sales volume and revenue, as well as the ability to expand the market more easily. Achieving these desires will increase the brand value of the company, thereby achieving a positive reputation for the company in different business circles. In addition, strategic value also has an impact on achieving the principle of transparency and disseminating the general directions drawn by the company's board members to the parties concerned.

BEST MARKET

The importance of having a strategy on which companies depend is also to take all the measures and critical steps towards choosing the most suitable regional markets for competition and thus increasing the expected sales volume. In achieving this, companies rely on the implementation of a business strategy, or called competitive strategy. This type of management product includes the formulation of the mission that achieves the reason behind its existence. The business strategy is also concerned with creating an external business environment, which is based on market testing and predictability of its future - the size of the economy, the dominant laws and regulations, the analysis of society, as well as knowledge of the most prominent opportunities and dominant attacks. In addition, the implementation of the business strategy has its role in obtaining the competitive advantage that the company will have uniquely from other companies, especially in light of the open markets and increased competition.

COMPETITION

To achieve the highest level of business competitiveness, the company is also involved in the implementation of the operating strategy or called operational strategy, which is based on the reformulation of competitive priorities, which must quickly be transformed into the operating needs of product design, planning for business, in addition to adjusting the efficiency and quality system, get results. This operational strategy is based on the choice of one of the four competition methods: either reducing the cost of production, reducing time consumed, raising the level of product efficiency, and achieve production flexibility.

BEST OUTCOMES

The importance of implementing the strategic system in the institutional process also plays a major role in achieving positive results for the company, through periodic follow-up of annual objectives. This also ensures that targets are reached according to the schedule, in the shortest time and using the least resources. Strategic action therefore contributes to reducing the value of production costs, as well as contributing to the highest positive results.

VALUE ADDED

The importance of having a corporate strategy will achieve and deliver the added value of the product to the target customer segment. This process of making added value depends on the arrangement and coordination processes between multiple markets. This type of strategy involves the construction of the vision that the Board of directors seeks to achieve in the future. Studies indicate that one of the most important characteristics of leading international companies is their reliance on a strategic vision through which they work and for them with full commitment. The institutional strategy also includes formulating the annual objectives that the company seeks to achieve, and follow-up to achieve them, thus shifting the business towards institutionalization and moving away in the traditional way. The corporate strategy also depends on the capabilities and business sources of the company. In addition, the corporate strategy includes the foundations of the company's internal component of having a good and interconnected system of work, and achieving governance and oversight systems. An example of the highest degree of competitiveness is the acquisition of the market, the development of the product provided, the entry into new markets, or the diversification of operations.

Finally, the common factor for these additions achieved by the corporate strategy is the transfer of the enterprise from an individual organization that is linked to it to a company that relies on different parties linked by the public interest. The strategic process also has a role to play in increasing the efficiency of the business and maintaining more production sources. In addition, with a strategic system on which the company depends, it plays a major role in its continued presence in the markets and under the competition doubly and repeatedly from those companies that operate with the traditional system based on satisfaction to achieve the minimum sales and results!.