How Business Analysis Could Impact on Businesses Strategy to Choose Right Project Selection - Literature review Example

This can demonstrate the future strategies or objectives that the business wishes to pursue in the future for growth, development, or to achieve greater benefits out of such strategic alliances. The critical analysis of each of such partnering between two firms is critically examined here to analyze the effects of each of the activities with its effects on business and market. The various literature sources are used to demonstrate the point of view of business management scholars with relevant examples from the contemporary global business history (Refer to Appendix 1).

The theory suggests that business activities take into consideration various market factors along with competitive structures of the market to ascertain the need for such merger, acquisition, or strategic alliance with another firm. This partnering can be domestic or international depending on the objective and span of control that the business targets to achieve. However, the traditional approach in business management is dependent on the trends of the market added with the experience of the managers that helps to formulate a pathway for future business activities, also called strategizing the business by an estimated future idea (Das et al. 2009). The strategic directions of the business are the base on which further additions, changes, budgeting, focus, are developed. The uncertainties of the market due to its unpredictable nature, especially in the international scenario prove the strategic approach wrong at times, creating panic and uncertainties of business future. The DFC (Discounted Cash flow) or the budget fixation is a major step in business planning where the resource allocation is devised for future busing ventures. However, if the future is uncertain the ability of such alignment may prove dangerous and beneficial, that predictions have little control upon. An understanding of the future helps predictions to be more effective in controlling the adverse effects.  But the danger stays if the managers don’t calculate future trends in perspective, developing a faulty strategic plan. Taking opportunities available while reducing future threats to business forms the key to a strategized business plan (Please refer to appendix 2 to observe the IT benefit-related association).

However, the level of uncertainties in strategic plans can be eliminated by a sound trend of market study that gives the future demands for business enhancing the futuristic planning abilities. The other one is that the market information with modern-day analytical tools may give the business an idea of certain unknown facts that get exposed after the survey giving the business ample scope to modify and avoid uncertainty risks. Cravens et al. (1993) argued that the analysis of future trends of the market helps the business to get a clear idea the of future to plan in accordance. In case if the future has a challenge waiting, the business may develop alternative plans to avoid them. Nevertheless, the applications of futuristic projections are not always successful for a business as the change in market dynamics may have retrospective effects on other variables which the ay have the least predictability, making the business innovate contingency strategies to cope. Further, there can be an option where the managers keep the views open for a range of probable events that may occur in the future. Thus a bundle of problems with probable solutions ashough of before elution. The last one is ambiguity in prediction where the managers have least or no control or ability to predict any outcome with a certain degree of certainty. Therefore, a strategic focus for future growth and prosperity has to have a strong strategic plan. One instance is the ongoing talks between the Indian and US governments for Pharmaceutical manufacturing facility building actinia to develop the South East Asian markets. However, the price competence and legal issues about the patent is one aspect that the US business needs to ponder.