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Business Strategy in Global Environment

Van Gelder (2003, p. 1) reminded us that the primary aim of formulating a business strategy is to achieve a particular consumer behavior. And traditional business strategies are usually product-driven or company-centric, which is why there is a need for a new strategy amid the revolutionized business landscape – one that requires a more consumer-centric approach. The current landscape, which will be discussed later in the Environment Evaluation, will justify this.The traditional American business strategy, for instance, featured short-term solutions and mass productions. We see this in the business principles advocated by Fordism, where mass-production and economic stability are achieved by paying high-wages to its workers. But the Japanese approach, which relied on high-technology to come up with high-quality products, quickly caught up with the Americans and eventually beat them in the automobile industry, thereby setting up new standards. David Morris (1996) referred to this as the Cycle Time Model wherein the Japanese can bring new products to the marketplace in a matter of months – an output the Americans could take years to produce. Toyota boasted that the speed of their production process enables them to collate consumer feedback and act on the improvements immediately, hence, avoiding future losses and gaining points in consumer response.Essentially, strategy in business is employed so that a business can fit into an environment, then survive and prosper. Campbell et al. (2002) described this business strategy formulation as a process since the movement goes on and on due to a constantly changing environment.

Business Strategy in Global Environment