Strategy is the other term for business planning to obtain competitive advantage in the market and to analyze the future events to operate successfully in uncertainty. The business strategies of an organization aim at bringing out strategic decisions about the choice of products, customer needs, and new opportunities in the terms of market and technology and other important decisions which help the firm to gain a competitive advantage in the market.
The business houses cannot take appropriate and important decisions without the availability of the complete information of the external environment. Business organizations cannot run in vacuum and it has to involve the external environment. There are many related parties to the business like the customers, society, environment, employees, creditors etc. It is very important for the firm to have a complete knowledge about its internal and external environments. A thorough study of the internal and external processes of the organization helps it to understand its strengths by establishing the points or the areas where the organization is good at as well as understanding its weaknesses, the areas where further improvement is required. This analysis would further help in understanding the external environments to understand the scope of the organization in the future. The strategic planning and recommendation requires the thorough understanding of the internal environments of the organization so as to plot the strategies accordingly, for the maximization of the benefits drawn from the strategies. The stake holders of an organization play an important part in the policy formation and implementation of the strategies.