In today's free enterprise system, the growth of a firm has been contributed not only to increase of profits, earnings, stock price and management security, but it plays an ever large role in stimulating national economic progress which related interd...
In today's free enterprise system, the growth of a firm has been contributed not only to increase of profits, earnings, stock price and management security, but it plays an ever large role in stimulating national economic progress which related interdependently with them.
The purpose of this article is to examine the business strategies for the growth and to suggest the business strategies for creative adaption to changing environment having affected seriously the business targets. I have utilized for this article the empirical analysis of the strategic elements of the highdeveloped companies in comparison with the underdeveloped in Korea, U.S.A. and Japan.
A host of articles have been devoted to the analysis of the detailed parts of the many business strategies which may influence on the potential growth of a firm. How can we find an optimum strategy for business growth to adaptation toward the environmental changes in the 1980's of Korea?
This article is devided into six parts as follow.
The first is concerned with direction and the need for this study.
The second introduces the general theory of business stategies as a foundation of this study.
The third discusses the strategies oriented to outside, a firm's structure and executive's decision making process for the growth of enterprise in U·S·A·
The fourth part discusses the like items above in U.S.A.
The fifth part is the analysis of the strategies elements for development of enterprise in Korea.
The sixth is the synthesis and conclusion of this study.
The executive must consider more than just the business objectives and choosing the strategy for the growth of enterprise. But the uncontrolable variables he must work with can be placed in the following categories.
1. Political and legal environment
2. Economic environment
3. Cultural and social environment
4. Existing business structure of the firm(of course, this is controlable in future)
In the long run the executive's actions may affect some or all of these variables. This is turn would affect to the outside oriented strategies which should make extensive use of the firm's strong points.
Setting the strategies oriented to outside that really guide the present and future development of company is a soul-searching procedure which requires top management to take a system view of the whole business, relate its present business, structure and resources to the external environment, and then post the broad outlines of the company's future course.
Taken altogether, the following six strategies provide a useful starting points and guideline for a particular firm, as a result of the detailed case study on American and Japanese enterprises. These six strategies could be phrased and made more specific in many ways. But these six strategies basically should be sought together because, in the long run, a failure in even one of the six areas might lead to the failure of the total business;
1. Choice of the product field in the high development.
2. New product development and diversification strategy
3. New market development strategy
4. Technological innovation and introduction of external techniques.
5. Active investment for expansion and appropriate preventation of the business risks
6. Choice of mergers as the firm's growth method
Developing good strategies is obviously a very complicated procedure. The top and planning manager must be well informed and know their own field thoroughly, for they will have to use the information which have drawn from all sources in the formation of the business strategies.
At the conclusion of this study, it should be always important to adapt to his environmental changes rapidly, intelligently and rationally, but more desirable is creative and positive adaptation toward them. I hope this article will be a moment for the further study of business strategies for development of enterprise in Korea.