Learning Business with Neha- Basics E1

Lets start Learning Business with three basics principles

Strategic Management

What is the first thing that comes to your mind when you think about the word strategy? The amazing part is that everyone knows it, but you may still be thinking about it ! Let me explain, strategy means choice, and business strategy is the alignment of a business or organization with respect to market choices in order to achieve the vision of our organization.

Having strategic management for the organization helps in the following ways:

1. Unlocking the organization’s potential
2. Maintaining a balance between the internal and external environment
3. Being a leader in our industry
4. Understanding the market requirements.

Tony Stark– Do you think just knowing about  strategy is enough for doing business?
Pepper Potts – No ways bro
Tony Stark– Then Whatelse??
Pepper Potts– Wanna know it? Lets read the given below and be ready to be a business master …….

SWOT Analysis:

Nothing to think much it’s so simple 
S for Strength
W for weakness
What is it? Its something which totally depends on us. So, it comes under internal factors.
O for opportunity
T for threats
Which comes under external factors

If its external or internal factors are always important so this process is the one which helps us analyse the above factors for our business. With that it also helps in finding the quality of every members working in your business.

Still thinking what will happen after doing all these?
Don’t underestimate it! This much knowledge about your company  will always help it in reaching the sky.

But why it’s important in business? Who will reply to it?????????

Nothing to think,
Why to fear when Acowale is here
The importance of SWOT analysis in business are as follow:
1. To understand our competitors clearly.
2.  To Evaluate potential risk for the company
3. To improve product quality and market share
4. To understand the probability and impact of risks.

Tony Stark– So I have an idea about SWOT also!
Can I do my business now?
Pepper Potts– Are you going to miss your next  flight?
Tony Stark– No! Why??????????
Pepper Pots– Then why always running! You need to learn more first.
I know you must be thinking knowledge for business never ends but at least learn the basics before starting it bro
Tony Stark– Ooo, So you gonna teach the whole business?
Pepper Potts – Yes obviously! That’s why we are Acowalers…..

Porter’s Five Forces Model:

It is a framework for analysing the competitive environment of any industry.

The five forces in Porter’s model are-

1. Threat of New Entrants: It is the threat of new business entering the market and disturbting existing businesses.
Here the threat is directly proportional to barriers to enter which includes parameters like Experience, Capital requirements, High Customer Loyality etc

2. Bargaining Power of Suppliers: It is the extent to which customer can put company under pressure.
It also includes how much switching cost you provide in your company.

3. Threat of Substitutes: If you find a better opportunity you will always wanna go there Similarly, if a customer gets a better option they try to always switch there.

4. Bargaining Power of Buyers: This is the case where supplier is less and the power will be more.
This depends on factors such as the number of buyers, the importance of the product to the buyer, and the ease with which the buyer can switch to alternative products.

5. Rivalry Among Existing Competitors: This depends on factors such as the number and size of competitors, the degree of differentiation among their products or services.

These factors help you to analyze the strength and weakness of the business  and  you can develop strategies to compete in the industry.