Development strategy is constant process of preparing and carrying out activities aimed at achieving the desired objective, taking into account the existing conditions, the specific place and time. It is one of the most important functional strategy of the company.
When choosing the strategy managers must take account of:
- company's resources
- objectives, vision of the company and its mission.
Features of development strategy
Strategy must respect following elements of marketing mix:
Assessment of the company's strategy allows managers to choose proper actions. Selection of the strategy consists of the following stages:
- generation of variants
- evaluation of variants
- selection of optimal variant.
Business development strategy consists of four interrelated components:
- Domain of action - specifies where and to whom the company intends to sell its products or services.
- Strategic advantage - consists of features making products or services more attractive than made by other companies.
- Strategic objectives - what and when managers of the company has to achieve.
- Functional action programmes - translate concept of the strategy into concrete actions of each organizational unit and the daily behaviour of each employed person.
Company will survive in the long term and implement fundamental objectives by maintaining permanent development and growth. Development is qualitative phenomenon involving product innovations, processes, organizational structure and management.
There are 3 stages of development:
- progress - change assessed positively,
- regress - change assessed negatively,
- stagnation - the transitional phase, no change.
In conclusion we can say that the strategy of business development is the way in which it intends to carry out the mission and strategic objectives, shows the direction and scope of the undertaking.
- Chang, H. J. (2002). Kicking away the ladder: development strategy in historical perspective. Anthem Press.