Organisational Purposes Of Businesses

Published Date: 02 Nov 2017

The booklet is presenting for the use of a reference guide. The key aspect of this booklet is to help people gain a better understanding of the topics which this booklet contains; peoples include partners, directors or senior managers of SME’s. Our line manager has already provided us with the contents page for the booklet and expects us to supply detailed information under each of the main four sections in which this booklet is based on.

The purpose of the booklet is to provide a study for business rather than a study of business – a text for members who are considering setting up and expanding their business. Our wish is to help members run their businesses efficiently and also gain profits in doing so. To do this effectively this booklet will teach our readers to understand what is business and the environment in which they work called business environment. Business environment is very crucial into recognising about businesses operating efficiently and what makes businesses a success and not failure. Furthermore, readers will also gain enhanced knowledge on how to control their businesses or even how to improve their businesses to effectively reach their targeted aims. Controlling a business is tough and therefore being aware of the key strategies in businesses is critical, it is considered that business failure occurs due to lack of control and knowledge. Therefore it is our hope that this booklet guides members to successes.

Business environment include all those factors that affect a company’s operations, money, furniture, customers, competitors, office staff, stakeholders, suppliers, industry trends, regulation, transport, communication systems, other government activities, social and economic factors and technological developments. Business Environment is composed of two words ‘Business’ and ‘Environment’. In simple terms, the state in which a person remains busy is known as Business. The word Business in its economic sense means human activities like production, extraction or purchase or sales of goods that are performed for earning profits. On the other hand, the word ‘Environment’ refers to the aspects of surroundings. Therefore, Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization. Business Environment has two components: Internal Environment includes five Ms i.e. man, material, money, machinery and management, usually within the control of business. Business can make changes in these factors according to the change in the functioning of enterprise. External Environment is those factors which are beyond the control of business enterprise are included in external environment. These factors are: Government and Legal factors. There are also two aspects of business environments: Aspects of a positive environment include money, furniture, customers, competitors, office staff, stakeholders, suppliers, transport, communication systems, bank, factory, business partner etc. On the other hand, negative environment include; noise, corruption, cheat, stealing etc. Micro environment which is close to business and affects its capacity to work is known as Micro or Operating Environment. It consists of Suppliers, Customers, Market Intermediaries, Competitors and Public. And the other one is Macro Environment it includes factors that create opportunities and threats to business units. Following are the elements of Macro Environment are: economic environment, non economic environment, technological environment, natural environment, Demographic Environment, International environment.

The booklet contains key questions, examples and information to guide members. For examples; how cultural environment shape businesses, what are national businesses are the importance of UK international business (advantages & disadvantages), how market structure determine prices, business resources, stakeholders and etc.

This booklet follows a simple passage, it has been divided into four sections; Organisational Purposes of Businesses, Nature of National Environment in which Businesses Operate, Behaviour of Organisations in their Market Environment and Assessment of the Significance of Global Factors that Shape National Business Activities. Then each section has its own points which are explained in detail.

Section 1: Organisational Purposes of Businesses:

There are many types of businesses in the world, those businesses are owned and run by private individuals are called private sector businesses. Examples of Private Sector Businesses are: Sole Traders, Partnerships, Companies, and Franchises etc.On the other hand Public sector businesses are owned and run by the Government for the people. Here people pay taxes to the Government and this tax money is used to finance most of the public sector. Examples of Public Sector Businesses are: Defence, National Health Service, Police, Universities, Roads, Council house. In contrast Voluntary businesses are not owned by any specific person. However, someone need to be responsible for ensuring that it sets targets and funds, also completing what is set up to do. Examples of Voluntary businesses are: orphanages, childcare centres, schools, health clinics, hospitals. On the contrary a charitable business is a company limited by assurance and does not have a shared capital. If a business is integrated for charitable purposes, then the Charities Commission will examine its memo and articles to make sure that the company has been set up correctly and will be run only for non-profit purposes with the income only to be used for the purpose of the Charity. For instance: Red Cross, Rotary International , and Salvation Army etc.However government businesses is owned by the national government or a state government within a fundamental system. Some examples of Government Businesses’ are: Charities - e.g. American Red Cross, Salvation Army, Foundations - e.g., W.K. Kellogg Foundation, Ford Foundation, community foundations, Social Welfare or Advocacy Organizations - e.g., National Association for the Advancement of Colour People (NAACP), American Civil Liberties Union (ACLU),Professional/Trade Associations - e.g., Chamber of Commerce, American Medical Association (AMA), Religious Organizations - e.g., churches, mosques etc.

Private businesses’ aims are to grow profits and their own business to grow bigger. Also they would want to increase their market share and sales to be at maximum. In Public businesses their aims is to provide public services and to use resources well for the benefit of the community. In contrast, voluntary businesses’ wants to create new methods to partnership working and where there are a number of benefits, voluntary businesses’ wants local communities gain benefits when all agencies work together and also have a clear view of goals for individual organisations, which will be more clearly realised. On the other hand, Charitable businesses’ aims are to deliver charitable services under their treaty agreements, frequently enter into commercial contracts, insubstantial owner of freehold or leasehold land or other property and the organisation also aims to grow larger, getting more advertisement. Conversely Government Businesses’ aims are; offering leadership on matters critical to health and engaging in partnerships where a joint action is required, shaping the research agenda and exciting the generation, also translation and distribution of valuable knowledge, setting norms and standards and promoting it but also monitoring their implementation. Furthermore their aims also includes articulating ethical and evidence-based policy options, providing technical support, catalyzing change, and building sustainable institutional capacity and also monitoring the health situation and assessing health trends.

Meeting objectives of different stakeholders:

A stakeholder is a person, a group or an organization that has a direct or indirect stake in an organization, because it can affect objectives and policies. Creditors, customers, employees, owners and suppliers can be stakeholders. A stakeholder is not same as a shareholder, who is someone that has acquired or been given value shares in a company. Stakeholders have certain obligations and responsibilities if a business is to continue to be successful.

Internal stakeholders can participate in the co-ordination, funding, resourcing and publication of the strategy from a local health and well-being partnership, the local Primary Care Trust and the local authority. For example; customers, suppliers, Board members, Former board members Staff members, Former staff members, Volunteers, Former Volunteers Donors etc.

External stakeholders are engaged in contributing their opinions and experiences in addressing the issues that is important to them as patients. For instance: Clients, Community partners, Members of groups served by our organization that is not accessing our services, leaders of colour from nonprofits, public, or private sectors. 

Some other stakeholders with their objectives:

Stakeholders

Who are they

Objectives

Owners

They invest capital in the business and get profits from the

Businesses

Profits, growth of the business

Workers

Employees of the business who give in their time and effort to make a business successful

Job security, job satisfaction and a satisfactory level of payment for their efforts

Managers

Employees of the business who manage a business. They lead and control the workers to achieve organisational goals

High salaries,

Job security,

Status and growth of the business

Consumers

These are the people who buy the goods and services of the business. 

Safe and reliable products, value for money, proper after sales service

Government

Government manages the economy. The government charges a tax from the business and also monitors the working of businesses in the country

Successful businesses, employments to be created, more taxes, follow laws.

Responsibilities and Strategies:

Businesses and consumers need each other. Consumers want the products and services that the businesses provide, and businesses know that without the consumers they have no reason to be present. That’s one of the reasons laws are written to protect consumers which should be of interest to both businesses and consumers. Educational effort in the consumer protection arena focuses on providing consumers with information on how to protect themselves from unprincipled business practices. But business owners and managers also need consumer-protection information to serve up their customers better and to steer clear of possible problems with regulatory agencies. However, obtaining information that is specifically geared to business is often difficult.

A business strategy is the way by which it goes out to achieve its required ends. It can simply be described as a long-term business plan. Typically a business strategy will cover a period of about 3-5 years (can be much longer).

A business strategy is concerned with major resource issues e.g. raising the finance to build a new factory or plant. Strategies are also concerned with deciding on what products to allocate major resources to - for example when Coca-Cola launched Pooh Roo Juice in this country.

Strategies are concerned with the scope of a business' activities i.e. what and where they product. For example, BIC's scope is focused on three main product areas - lighters, pens, and razors, and they have developed super factories in key geographical locations to produce these items.

Two main categories of strategies can be identified, which are General strategies and Competitive strategy.

The most important types of generic strategies that organisations can follow are:

1). Growth i.e. the growth of the company to purchase new assets, including new businesses, and to develop new products. The Inland Revenue has expanded from being just a tax collector, to other functions such as collecting student loan repayments and paying tax credits.

2). Internationalisation/globalisation i.e. moving procedures into different countries. For example companies like Gillette, Coca-Cola, Kellogg's, Cadbury and Schweppes are multinationals with operations across the world.

3). Retrenchment is cutting back to focus on your best lines. Basically concentrating on what you do best.

Strategy at Different Levels of a Business:

Strategies exist at numerous levels in any organisation - going from the overall business through to pupils working in it.

Corporate Strategy - is concerned with the overall purpose and range of the business to meet stakeholder prospects. This is a crucial level since it is heavily opinionated by investors in the business and acts to guide strategic decision-making throughout the business. On the other hand Business Unit Strategy - is worried more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. Besides this is Operational Strategy - which concentrates towards how parts of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy focuses on subject of resources, processes, people etc.

2. Nature of National Environment in Which Business Operate:

Economic Systems that Allocate Resources:

A market economy that is centred on supply and demand with little or no government control is a free market. A free market is an idealized form of a market economy where buyers and sellers are allowed to transact freely (i.e. buy/sell/trade). For example USA economy. On the other hand, a system in which the government, rather than the free market, establishes what goods should be produced, how much should be produced and at the price which the goods will be for sale. The command economy is a major feature of any communist society. China, Cuba, North Korea and the former Soviet Union are examples of countries that had/have command economies. On the contrary a mixed economy is one in which there exists a mixture of free enterprise and government control. In some areas of a mixed economy, the government may even have a monopoly. Most of the developed countries of the world have a mixed economy. Mixed economies are also known as dual economies, for instance the UK’s economy.

Impact of fiscal and monetary policy on business organisations and their activities:

Fiscal policy relates to government spending and revenue collection. For example, when demand is low in the economy, the government can step in and increase its spending to stimulate demand. Otherwise it can lower taxes to increase disposable income for people as well as corporations. Additionally monetary policy associates to the supply of money, which is controlled via factors such as interests’ rates and reserve requirements for banks. For example, to control high inflation, policy-makers (usually an independent central bank) can raise interest rates thereby reducing money supply.

Impact of competition policy on the chosen organisation:

Competition Policy is the policy of government and other organizations implement to either cultivate more competition in a market or to decrease competition. Government use these policies to protect firms in very competitive markets or stopping monopolies from forming and abusing market power. Some example are, laws that stop companies merging (the market then becomes monopolistic and they abuse market power by setting prices very high), market reforms, regulation etc. The aims of competition policy is promoting competition in markets and pricing between suppliers, progress markets, Contribution of efficiency and competitiveness, wider consumer choices for goods and service and technological innovation.

UK Competition Policy

UK competition policy stops and reduces the exploitation of monopoly power. However Exploitation of monopoly power can lead to market failure and be against the public interest. Therefore Government are concerned to intervene and protect the interests of the consumers. In 1998 Competition Act sought to bring the UK into line with the European Union’s (EU) competition policy. The Office of Fair Trading (OFT) is responsible for investigating suspected exploitation of monopoly power and engaging in prohibited practices. There are two main types of behaviour they investigate:

Collusive Behaviour

This happens when firms enter into agreements to fix prices and or output. This enables firms to make higher profits at the expense of consumers.

Collusive tendering occurs when firms enter into agreements to fix the bid at which they will tender for projects. Firms will take it in turns to get the contract and enable a much higher price for the contract. Collusive behaviour is illegal, this occurs when firms enter into agreements to fix prices and or output. This enables firms to make higher profits at the expense of the consumers. Collusive behaviour is illegal and can be investigated by the OFT.

Abuse of Market Power

Say a firm has more than 40% of the market share then it is considered to have market power. The OFT are more likely to investigate firms with a dominant market position. However they can also investigate people with less market share. Abuse of Market Power may include:

Predatory Pricing is selling below cost with intention of forcing a rival firm out of business and Charging Higher prices is a Monopoly which is able to set high prices. The OFT may consider this abuse of monopoly power if it leads to excess profits. Another option is Vertical Restraints - Firms may use market power to pay lower prices to suppliers (e.g. Supermarkets have been criticised for paying low prices to farmers. Tie in Sales: E.g. A printer which makes people may its own brand very expensive ink.

Merger Policy

The OFT may recommend mergers be referred to the Competition Commission - to see whether the merger is in the public interest. Example Mergers of Competition Policy is to investigate into grocery market - largely cleared big supermarkets of unfair practises and accepted by Commission Competition Policy at OFT. On the other hand other competition policies are: Benefits of Mergers, Disadvantages of Mergers, Monopolies, Abuse of Monopoly Power, Collusive Behaviour, EU Competition Policy, and Evaluation of UK Competition Policy

3. Behaviour of Organisations in their Market Environment:

Market structure is a consistent characteristic of a market, such as the number and relative strength of buyers and sellers and  degree of collusion among them, level and  forms  of  competition, extent of product differentiation, and ease of entry into and exit from the market.

Monopoly is outlined by Salvatore as "Monopoly is the form of market organisation in which there is a single firm selling a commodity for which there is no close substitutes.There are some characteristics of monopoly such as: There is only one seller and the entire control on the supply of the product is in the hands of monopolist. Under monopoly, a firm itself is an industry; it can be a sole proprietorship, partnership, JSCs etc. Furthermore, there is no close surrogate of a monopolist’s product. The event of cross elasticity of demand is least possible. There are restrictions on the entry of the other firms in the area of monopoly product.

Duopoly is a special case of the theory of oligopoly in which there are only two sellers and they are absolutely independent and no conflicts arise amongst them. A variation in price and productivity of one will affect the other and hence the other bearing loss has to match up with the price of the competitor.

Oligopoly is a market stipulation in which there are a few firms selling standardised or varied commodities. It is complex to point out the number of firms in competition among the few. With only a few concerns in the market, the action of one firm is tending to afflict the others. An oligopoly industry produces either a standardised product or assorted products. The former is called pure and perfect oligopoly and the latter is called imperfect or discriminated oligopoly. There are some characteristics of Oligopoly; Interdependence among the sellers in the oligopolistic market. Each oligopolistic firm knows that changes in its price, advertising, product characteristics etc. may lead to counter-moves by competition. The advertisement outlay is more in the case of oligopolists and consumer services. However lack of consistency in the size of firms is another feature. Some may be small, others very large. Such a situation is asymmetrical. The Demand Curve is not easy to be traced out in an oligopolistic market.

Imperfect Competition is a type of market that does not operate under the rigid rules of perfect competition. Perfect competition implies an industry or market in which no one supplier can influence prices, barriers to entry and exit are small, all suppliers offer the same goods, there are a large number of  suppliers and buyers, and information on pricing and process is readily available. Forms of imperfect competition include monopoly, oligopoly, monopolistic competition, monophony and oligopoly.

Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment. It is helpful for customers, because it makes prices up and down for customers.

Change in Demand is a term used in economics to describe that there has been a change, or shift in, a market's total demand. This is represented graphically in a price vs. quantity plane, and is a result of more/less entrants into the market, and the changing of consumer preferences. The shift can either be parallel or nonparallel.

A parallel shift in demand means that there is no change in the elasticity of demand for the given market, but a nonparallel shift means there has been a change in elasticity.

How market forces shape organisational responses:

Market forces: Forces of  command and supply representing the aggregate influence of self-interested buyers and sellers on price and quantity of the goods and services offered in a market. In general, excess demand causes prices and quantity of supply to rise, and excess supply causes them to fall. Some different types of market forces are given below:

Demand and Supply is when economic is fundamental to the price mechanism in a free market system. They determine the price of a good or service offered, as there are in turn determined by the price obtainable. It is a largely self-regulatory mechanism generally resulting in market equilibrium where products demanded at a price are equalled by products supplied at that price. In the case of Elasticity of Demand, the degree to which demand for a good or service varies with its price. Normally, sales increase with drop in prices and decrease with rise in prices. As a general rule, appliances, cars, confectionary and other non-essentials show elasticity of demand whereas most necessities (food, medicine, basic clothing) show inelasticity of demand (do not sell significantly more or less with changes in price), also called price demand elasticity. See also cross price elasticity of demand. Another example is Customer perception this is a marketing idea  that encompasses a customer's impression, awareness and/or consciousness about a company or its offerings. Customer perception is typically affected by advertising, reviews, public relations, social media, personal experiences and other channels.

Cost and Output Decisions is the process of recognising the benefits and costs of different alternatives by examining the incremental effect on total revenue and total cost caused by a very small (just one unit) change in the output or input of each alternative. Marginal analysis supports decision-making based on marginal or incremental changes to resources instead of one based on totals or averages. To a further extent Out sourcing is the contraction or sub contraction of noncore activities to free up cash, personnel, time, and facilities for activities in which a company holds competitive advantage. Companies having strengths in other areas may contract out data processing, legal, manufacturing, marketing, payroll accounting, or other aspects of their businesses to concentrate on what they do best and thus reduce average cost. Outsourcing is often an integral part of downsizing or re-engineering, also called contracting out. Another important one is Employee skills and up skilling is the tuition of a single employee in multiple skill-sets. Another definition regards labour unions and their structure, which promotes workers who have a range of skills or knowledge for working on several different  projects, which may or may not be a part of the worker's  technical job description. This increases productivity and cuts the bottom line for a company, which does not have to hire  additional personnel to do other jobs. Lastly an alternative is Research and Development Systematic activity joining both basic and applied research, and aimed at discovering  solutions  to  problems or creating new goods and knowledge. R&D may result  in ownership  of intellectual property such as patents. In accounting for R&D costs, the development costs may be carried forward but the basic and applied research costs are often written-off as incurred.

Also another crucial market force is Mergers and Takeovers this is an area of banking or financing that deals with funding of acquisitions, mergers and takeovers. It is usually an area of specialty of corporate lawyers, merchant banks and stock brokerage firms.

Shaping the behaviour of organisations:

Business Environments can shape the business organisation’s behaviour in many ways. These includes, banking and financial institutions, market institutions, government agencies, industry associations, religious organisations, coalitions, global organisations and small businesses. However, National cultural and their tradition is a cultural environment. In business cultural environment is personal behaviour of individuals and ethical & green issues. For instance risk taking, innovation, religious beliefs are also cultural environment. Business Behaviour is the business cycle (e.g. growth, death point & depression), consumer behaviour, exchange rates are called business behaviour. Another way is Organisational Responses, this is very important for business. There are two organisational responses in business; Positive, which includes Incentivising, rewarding (financial or non-financial), compensation. Also negative, this includes Punishment, admonishment and undervaluing. Target setting is an option, praise and recognitions are also part of how an organisation responds to shaping the organisation. Lastly Consumer Response is equally important as it can impact; reinforcement, aim, repositioning, acting on social change. Others also include fixed interval, fixed ratio and variable ration.

4. Assessment of the Significance of global factors that shape national business activities:

International trade of UK business organisations:

The swap of goods or services along international borders is international trading. This type of trade allows for a greater  competition  and more  competitive pricing in the market. The competition results in more affordable products for the consumer. The swap of goods also affects the economy of the world as dictated by  supply and demand, making goods and services  obtainable which may not otherwise be available to consumers  globally.

Interest group of 27 advanced and less advanced nations, formed in 1960 as a successor to the Organization of European Economic Cooperation (OEEC) formed in 1948. It operates as an intergovernmental-organization  and aims at coordination of economic development of member and non-member countries through multilateral  trade, trade liberalization, and economic reform. OECD also covers technology, economic and scientific research, and international terrorism, and is one of the World’s sources of economic and statistical information. Its current member nations are Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, UK, and USA. Membership of Russia in the OECD and in its elite Group of Seven (G7) is expected.

Impacts of International Trading on UK Businesses:

Advantages:

Local employment in UK increases due to international trading and UK companies may gain technical information from abroad with foreign workers. The production or goods imported by UK companies may come in variety and also in better quality than local production. Sometimes foreign imports provide a cheaper alternative than local production, this gives companies an advantage in funds and profits. International trade also gives UK companies a good relationship bond with international companies, this regenerates in economic gain for the country’s businesses. Overall International Trade makes competition increase on all levels and achieves monetary gains with it.

Disadvantages:

Many small UK businesses lose out to foreign companies as their production may be more advanced than the local. This leads to decrease in local business production demand. This then leads to local businesses going bust. On the other hand for UK businesses being dependent on international companies is often unreliable. This may be cause the required production is may not be delivered in times of economic trouble in the foreign country. Economic trouble can be caused by a number of reasons; natural disasters, civil violence and natural economic inflation etc. Bad reputation can be gained as some foreign production is achieved through exploitation of the underprivileged.

Global factor:

International trade and the UK economy;  market opportunities; global growth; protectionism; World Trade Organisation (WTO); emerging markets (BRIC economies – Brazil, Russia, India, China); EU membership; EU business regulations and their incorporation in took law; EU policies e.g. agriculture (CAP), business, competition, growth, employment, education, economics and finance, employment, environment, science and technology, regional); labour movement; workforce skills; exchange rates; trading blocs (e.g. monetary unions, common markets; customs unions, free trade areas); labour costs; trade duties; levies; tariffs; customs dues; taxation regimes; international competitiveness; international business environment (political, economic, social, technical, legal, environmental); investment incentives; cost of capital; commodity prices; intellectual property; climate change.

Impact of European Union policies on UK business organisations:

United Kingdom has been affected in different ways by being part of the European Union. A good example is the impact on the judiciary. The United Kingdom Judiciary has been altered by EU membership for different reasons. Also, the EU has had a huge effect on UK law, because it has given the Judiciary a large amount of work to do in interpreting its laws. For example, where the two laws conflict the Judiciary has the responsibility of asserting EU law.

UK trade has benefited significantly from EU membership on joining in 1973, and also from increasing integration through the single market. UK trade within the European Union have been boosted by 7% and business within UK has gained major rewards from this. There has been some trade diversion but the trade creation has out benefited it. Welfare benefits have increased also.

Foreign Direct Investment flows into and from the UK have also been considerably regenerated by the EU membership, allowing firms to restructure and boost efficiency. Economic studies have suggested that the UK’s inward flows are linked to the EU. UK has paid more than it has taken out, and increasingly so as UK became richer. However, overall fiscal balance is quite small in proportion to GDP. Currently UK pays in parallel amounts to comparable member states, but the UK receives much smaller payments under the CAP and structural funds. With rebate, UK’s effective net contribution only 0.25% of GDP, estimated to be only 0.19% with private sector receipts accounted for.

A greater degree of openness through EU membership has attracted more investment from multinational business which has increased the level of technical progress among highly – integrated European business boosting exports and opening up markets thus raising the level of competition in each market. This had a huge impact on productivity and GDP growth.

We can learn a lot of about Business by reading Business Environment. There are many business sectors in the world, it helps us how to operate business, how to continue the business, what is its aim and about responsibilities along with strategies of an organisation. It also helps us to learn about the nature of the national environment of businesses, for example; how economic systems allocates resources effectively, the impact of fiscal and monetary policy on business organisations and also the impact of competition policy along with other regularities mechanisms on the activities.

It is also crucial to know how market structures determine the pricing and output decisions of businesses. Market forces shape organisational responses in many ways. Behaviour of an organisation can be shaped by Business and cultural environments. International trading has huge significance on UK Business and on how they affect the country’s business structure. Global factors also impacts businesses, for example policies by European Union on UK Business organisations.

From our point of view the most important aspect of business is its strategy. Failure and success of a business fully depend on its strategy. Strategy is nothing but a forecasting power by a company on the basis of resources, market demand and variability, competitive advantage, uncertain business environment and its stakeholder expectation. It is easier or it is not all time possible for a company to start any business by fulfilling all kinds of resources at a time. If we analyse all successful company, they started their business with many lacking, but they took right strategy considering their lacking and they have overcome their lacking step by step. Market needs is not stable it has reasonable up and down and it is depends on many factors. So while the policy makers of a company is making a strategy should be kept in mind those factors and reasons. Competitive advantage is the main arms of a company which gives the company long term profit and sustainability. Business environment is always unstable and uncertain in some factors. It's actually a big challenge for a company and it is the main focused point of a strategy. Now stakeholder expectation is the main difficult issue for a company while they are making the strategy. Because there are different kinds of stakeholder and their expectation is different and vies-versa. So many successful companies focused on one's expectation and minimize other's expectation for their longevity and sustainability. At the end strategy always find the way and the scope of business.

Organizations will succeed by having, communicating and garnering support for a Shared Vision. Visioning sets the stage for necessary processes, such as growth strategies, re-engineering, training, enhancing shareholder value and organizational development. Failure to prepare for the future spells certain death for businesses and industries in which they function. The same analogies apply to personal lives. Greater business awareness and heightened self awareness are compatible and part of a holistic journey of growth.