“Business that were developed during the emergence of

“Business Strategy management is the art, science, and craft of formulating,
implementing and evaluating cross-functional decisions that will enable an
organization to achieve its long-term objectives.” From the above definition I
understand that in order to run any business, organization or a multinational
company Successfully, it is essential to have a good business strategy.

And for that, an effective implementation of Consistent long-term goals, understanding
of the dynamic environment as well as optimum utilization of resources is
required. As future is uncertain, every business house to grasp strategic
design and strategic choices for instance where and how to compete which
further have multiple dimensions that include supplier, buyer, customer groups
etc. Business strategy should add value to the output of firm and work in a
dynamic environment

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Moving towards Industrial and Financial analysis. The Industrial analysis is a tool that facilitates a company’s
understanding of its position relative to other companies that produce similar
products or services. It is also known as potters five force analysis. It helps
to understand your industry and anticipating its future trends, directions and gives
you information that how you need to react and control your portion of that
industry. If we look at the HBR article 2001 “strategy and internet” give us
insights about how internet and e-tailing can lead to low margins but also if
the industry raises more barriers to entrants through strategies can reduce rivalry
and increase economies of scale. Google is already doing that which is helping
the company to dominate web search as well as maintain its business. As I went
through the article of craft beer I observe that the 90% beer industry is in
hands of two rivalry companies who have the strongest competition. Laws that
were developed during the emergence of small retailer shows that they had
barriers to entries. It also shows how craft beer industry is driven by
consumer demands and has rapidly increased in less than a decade. As stated in
the article “sometimes consumers have their own reasons to
turn against monopolies—particularly in taste-driven industries” The companies can feel the bargaining power of buyers which one of the major forces of potter’s five
forces. In case we
see how craft beer industry was able to achieve its aim effectively by giving
productivity and also generating employment. This also shows that even the
small business houses can make a great difference in the economy.


Moreover, Financial analysis with respect to business strategy,
acknowledges profitability, business development, financial planning, and
analysis, or in competitor analysis and investment opportunity. It assists to evaluate
your company’s current performance and sustainability based on today’s market conditions
and analyze financial statements to assess the management of key
success factors and business risks. In the chapter it also aids to learn about
appraising current and past performance in case of FORD and TOYOTA which includes
the forward-looking measures (stock market value) and backward-looking measures
(accounting ratios) which helped me to understand where Ford was better when
compared to Toyota in terms of productivity which leads to higher inventory turnover
and how it can use the past performance to strategies to improve its
performance in future as “role of strategy is to allow the firm to adapt to change”. In order to have a great business strategy, it is essential
to understand the linkage between industrial analysis, financial analysis as
well as strategically analysis and also how they all complement each other.


I would like to conclude that potters five force
model is actually very helpful in understanding the business environment and it
can be used in any industry. Furthermore, I would also like to mention that strategic
business analysis should be applied in business on the regular basis so as to
keep a check on the business activities as well as dynamic environment. It will
not only be beneficial to forecast results but will also help the company to retain
its business in long run as stated in one of the articles by Michael
E. Porter

 “A company can
outperform rivals only if it can establish a difference that