Business Policy

Question 1: In your opinion, is it best for a small firm to build, borrow, or buy to grow.
Answer: In my opinion, I think it is best for a small firm to build from within to grow because
unlike borrowing and buying, building from within which is also known as organic growth,
which can be used as a method to achieve good results. Building from within has its own
benefits, training programs can be introduced in order for newly hired employees to receive
training and gain better understandings in regards to what the firm would have to offer and also
about the products or services that they wish to sell. It also gives them the opportunity to target a
market that does not necessarily have a competition that is present, a strategy called ‘blue ocean
strategy.’ Various well renowned companies such as Apple, Netflix and Amazon have adapted
the strategy, partially, even so they have all succeeded.
Regardless of the fact that running a business or even starting one does definitely carry a
risk factor but in my opinion for a small firm to build from within to grow is comparatively a
better option than the other two as building from within lets the firm understand their purpose
and helps them strategize better allowing not just the firm but also its employees to grow.
Reference: ‘Strategic Management; 17th Edition, A competitive advantage approach, Pg.146”

Question 2: Why do you think it is not advisable to pursue too many strategies at once?
Answer 2: In my opinion, it is not advisable for an organization to pursue too many strategies at
once because when an organization tries to do too many things at once, it often can't do any of
them very well. This is because its resources and skilled people often strain themselves due to
the heavy workload given to them, making it easier for the competitors to perform better than
them. It is common for an organization to follow one strategy or even form a combination of two
or more strategies, or even follow one strategy and have an alternative for it if the initial strategy
doesn’t work. If they follow multiple strategies they will be doing things that would clash with
each other, for instance if strategy 1 (Horizontal integration) requires the organization to gain
control or own the competitors firm but strategy 2 (Unrelated Diversification) requires them to
add new unrelated products to the firm, which will leave their employees, management and
customers all confused.
Reference: ‘Strategic Management; 17th Edition, A competitive advantage approach,
Pg.130,131”