New Business Strategies and Business Environments - Essay Example

According to Kaplan and Norton (2001), it is important for new businesses to actually make new and effective business strategies that both tackle internal and external environments, which include the prevailing business environments. In this case, whenever formulating new strategies, especially in the corporate sector, it is important to look at several key indicators such as inflation, the position of competitors, the rate of employment and unemployment, the willingness of consumers to spend, as well as the overall rate of economic growth in the country (Kaplan & Norton, 2001). In this case, such factors will surely help business formulate their specific strategies, whether to focus on offering new products that would fit current consumer spending trends, on building a more competitive and productive labor force, or even looking at a potential competitive advantage over other competitors. However, looking into the external general business environment would not be enough, given that it is also important for a business organization to look into internal factors, such as the productivity of the current labor force, efficiency rates, and even the SWOT analysis. In this case, Kaplan and Norton (2001) suggest that for new strategies to succeed, it is important that a business organization must be able to translate its thrust into all of the components of the organization, taking into consideration changing business environments.