Every business needs to have a strategy and this strategy must be related to changing environmental conditions. In order to survive and maintain growth and expansion business owners must protect the business from potentially harmful influences, and be ready to take maximum advantage of the challenges and opportunities presented.

While business owners must always accept the need for innovation there is still the decision as to which opportunities it wishes to develop in relation to its resources, and those it chooses not to pursue. An effective business strategy depends upon the successful management of opportunities and risks.

Strategy should be based on the priority of maximising opportunities, and that risks should be viewed not as grounds of action but as limitations on action.

While it is not possible to ensure that the right opportunities are chosen, it is certain that the right opportunities will not be selected unless:

• The focus is on maximising opportunities rather than on minimising risks;

• Major opportunities are scrutinised collectively and in respect of their characteristics rather than singly and in isolation;

• Opportunities and risks are understood in terms of the appropriateness of their fit to a particular business; and

• A balance is struck between immediate and easy opportunities for improvement, and more difficult, long-range opportunities for innovation and changing the character of the business.

If the business is to be successful then its organisation structure must be related to its objectives and to its strategy. The structure must be designed so as to be appropriate to environmental influences, the continued development of the business, and the management of opportunities and risks.




By: IvoireConsultancy