Business strategy is closely linked and strongly affected by the supply chain essay

As we know, business strategy is closely linked and strongly affected by the supply chain. Business strategy can not be developed without taking into consideration company global supply networks and delivery streams. The supply chain can be the main constraint in how businesses achieve growth and development. Most business strategies include goal and policy setting. Typically these goals are connected with products while strategies are directed towards gaining market share and increasing customer value. Both of them require increasing competitiveness level and general agility. The instability of supply chain can be a significant factor in setting the speed at which the business moves forward and reacts. Instability in company business is often associated with supply chains. But supply chain strategy and business strategy are not quite easy to be combined. Business growth can be difficult in case the supply chain is forced by capacity or some problems in the supplier network sphere. If the strategy has been identified careful management will be necessary to reach objectives guarantee that all the required conditions in terms of cost, delivery and quality are kept at a minimum level. Business strategy and supply chain interdependence is obvious from various examples. Seghal V. includes four points that supply chain directly influence on: management of demand, management of supply, management of inventory and management of resources (Seghal 2011 123-126). We can see that all these components are closely related to business strategy and possible objectives for business growth can not be set without considering these components. So, both business strategy and supply chain strategy should be observed in the context of how they affect each other.