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Essay / Business Strategy, Outsourcing and Focus on Core Activities
Every organization has its plan on how to execute different operations to achieve the set goals. The business strategy shows how to implement these activities and the expected results for the organization. Certain activities have little impact on the overall performance of an organization and management therefore chooses to outsource them from external markets. The company gives priority to core activities as they are the source of revenue for the company and better strategies are adopted to ensure their success. Business strategy, outsourcing and focus on core activities. Business Strategy Business strategy shows the patterns of an organization that describe missions, goals, and policies. , and guiding principles that describe how to carry out various plans and the type of business category to pursue. The strategy also gives a plan on the type of economic organization in which it intends to belong and the different projects for the members, employees, customers and shareholders of the company. Business strategy applies to the entire organization, unlike business strategy which only concerns the specific product in demand at a given time. Business strategy allows an organization to achieve superior performance through fierce competition with others in the same field, while focusing on the resources needed to achieve high returns in the end. Since it is a process, organizational formulation and implementation are the aspects of strategy analysis. Senior executives, which include managers, directors, and presidents, are responsible for implementing the organization's business strategy (Foss, 2003). How external turbulence encourages outsourcing Many companies...... middle of paper ..... .this (Mahadevan, 2010). As such, outsourcing is a good business strategy in today's business world. References ListDalal, J. (2011). Outsourcing in an age of turbulence. International Association of Outsourcing Professionals (IAOP): Global Business magazine. Retrieved from: http://www.iaop.org/PrintContent.aspx?CTX=2&AID=3192&SID=34&SSID=175Foss, JN Resources, Firms, and strategies: a reader in the resource-based perspective. Cape Town: Oxford University Press. pp 54-55Huber, B. (2011). The Great Debate Over Procurement Outsourcing: An Important or Essential Business Function. Technology Partners International, Inc. Retrieved from: http://www.tpi.net/pdf/pointofview/POV-The-Great-Procurement-Outsourcing-Debate.pdfMahedevan, B. (201). Operations management: theory and practice. South Asia: Dorling Kindersley (India) PVT. Ltd. 49