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Every organisation needs to plan to develop in order to lead the market. The processes and tasks that can contribute towards the growth and development of an organisation are referred to as business development.The field of business development is considered to be a subset for subjects like commerce and business management Any activity by a different organisation may get involved in the business development procedure. The customer requirements are difficult to predict and hence it is a challenging task to analyse the customers. There are business development consultants who can assist in performing specific activities that can be performed both externally and internally from the business.
In case of a business it is important to first identify the areas in business that can benefit the over-all performance of the organisation if developed. Once the areas have been identified then the organisation can strategically address the ideas in order to facilitate the successful implementation of these ideas. There are a number of growth models available that can ensure that the business develops significantly. The subject business development is quite broad in nature and it covers all the subjects like advanced marketing, IT-programming, sales and returns, specialised engineering, activities associated with accounts management and customer analysis. Due to its involvement in all these areas it is quite difficult to say if these activities have the potential to enhance the profits of an organisation. This aspect of business development is applicable for all the organisations irrespective of the field that they are associated with.
Basic activities associated with business development include supply chain management, product management, marketing and sales. Apart from all the activities mentioned it further involves negotiation, activities aiming to initiate cost-effectivity and partnership
Let us take an example to understand this aspect of business development better. Say there was an organisation called X which was located in Japan and had successfully established in the market of Japan but the business development consultants assessed that further expansion will effectively contribute towards enhancing the performance of the organisation. So, with detailed researches and studies the organisation will identify the potential market and will strategically approach to establish their business in this new market. This is just one task associated with business development; similarly there are a number of other tasks associated with this subject. The objectives of business development are closely related to the functions of a business. The relation between these objectives and the specific departments in an organisation are mentioned as follows:
Price plays a significant role for the customers while selecting a specific product in the market. It is quite challenging to maintain the quality of services and offer it at a low price. The only trick that can work is by ensuring that the manufacturing procedure is cost effective in nature. Often it is considered that business development is associated with marketing and sales however that is not true. Improvement in over-all performance requires a strategic approach. Ensuring that the manufacturing procedure is cost effective in nature is considered to be one such measure that can be dealt with this situation. Initiatives that can ensure cost effectivity are advantageous for the organisation.
Marketing refers to the activities involved in ensuring that the product is present in the right place at the right time in front of the right customers. These activities aim to reach out the target audience which will result in significant improvement in the sales of the product or services that the organisation produces. The role of a business developer is to allocate the budget for all the marketing activities and contribute towards providing effective assistance in strategizing all the marketing activities.
Sales is the only way to earn revenue and hence is considered to be a significant aspect associated with any business. Business development can help in the procedure of identifying the target audience or a potential market. This certainly contributes towards planning an effective strategy for the business to perform better. Analysing the market and the customer requirements is one of the most important aspects associated with any business.
Globalisation has enabled every business to expand across the borders. Every state has their set of regulations associated with business practices and the market requirements vary from state to state. The products and services need to make changes considering the market specifications. The analysis of market requirements is part of business development.
Every business has a manufacturing unit and manufacturing units require quality supplies to produce the products or services that they aim to. There are two aspects associated with supplies which are the quality of raw materials and the cost of raw materials. The aim of every organisation is to look for suppliers that can provide quality supplies at the lowest price possible. The entire product manufacturing is associated with the supplies that they receive. The business development team actively involves in the scouting process of the appropriate supplier.
Both networking and negotiation are basic aspects associated with a business. In order to initiate various business activities the networking as well as negotiation skills are required. All these initiatives are considered to be part of business development.
It has been observed that effective partnership with an organisation can benefit both the organisations involved in the partnership. The main aim of initiating a partnership in business is to expand the business and benefit it in various ways. Business development can analyse the results of partnership which makes it easier for the management to decide if they should get involved in the partnership or not.
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Business development, if used strategically, can contribute towards the improvement of business performance of an organisation. In terms of business this aspect can improve the effectivity of the organisation and can contribute towards increasing the productivity of the organisation. It is quite evident that the business development plays a significant role in a business and needs to be used carefully to experience better results. In this competitive market condition it is necessary for every organisation to be prepared for the uncertainties that may occur with time. Business development can actively assess the potential of various business strategies and predict the impact it may have on the over-all performance of the organisation. It has the potential to increase the value of the organisation. It effectively contributes towards the growth of the business and hence is considered to be an important aspect in every organisation.
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