New business strategies [Archives:2002/41/Business & Economy]

October 7 2002

The Road Ahead
Redefining a Business Strategy
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As everything is subject to change, a business organization is also subject to change. Organizational change can be a result of changes in marketplace demands, competition, new products and services or fluctuations in the economic conditions. These changes necessitate business organizations to reformulate, revise and redefine their strategies.

Unless redefined, the consequences will effect the organization negatively and it will end up with a few hard options to choose from. And when such organizations eventually tend to bring change agents in, their ability to come back to the track will be very limited. A quick solution from within might be the best viable option.

Time and again, creative managements have enlarged the boundaries of their businesses by re-evaluating their assets and their applications in order to bring the business back into track. This is why it is best to start with adopting a better asset utilization strategy.

Redefining a business strategy through an asset utilization strategy could bring into consideration new options that are more viable. For example as many smaller computer manufacturers find it harder to compete with the giants in that field, they shifted their focus from computers into computer accessories and supplements.

Assets can be in the form of physical assets, Production capacities, and skills. In fact, the ability to match skills with physical assets can ensure the maximum utilization of them. Like how advanced engineering skills can help in increasing the production capacity of a machine.

Examples of skills can be Production & Engineering skills, Marketing skills, planning & coordination skills & fund management skills. Such skills are essential in order to appreciate the true value of an organization, which lies in the skills of its people who are again the most important asset in an organization. If their skills were properly utilized they would act as resources that can facilitate and open new business opportunities. Look at the Yemen times for example; Event management skills were utilized in creating events such as the upcoming training course on press coverage of the coming elections for journalists.

Tactical use of skills might hold present surprises. A good example is The National Trading Company (NATCO); the distributors of Ford & Hyundai vehicles in Yemen. After they faced difficulty in achieving their targeted sales volume, they redefined their strategy and used their marketing skills in fleet sales. They were very successful and an award winners.

Moving away or divesting from the original business is sometimes critical for a business. The business strategy has to be redefined according to the resources available either as assets or skills and knowledge. This will help in meeting changes and increasing pressure on the business organizations.

Endnote: An Asset Utilization strategy is often the most viable option available in order to improve its performance. Such a strategy will force the company to redefine its strategy and look for new opportunities.