Discussing The Influence Of Government's Function On The Formulation Of Business Strategy

The government always has suitable influence on enterprise who is the subject of themicroeconomy, and the business strategy plays a decisive role to the existence anddevelopment of enterprises, so, enterprises should all consider government's factor offunctions while making and carrying out strategy. The government has excessive orinsufficient impact on enterprise's behavior are both inadvisable.It is always a difficultproblem how to keep the appropriate balance relation between the government and enterprise,enterprises all need to pay the suitable attention to government function while making andcarrying out strategy, otherwise there will bring hinder to implementation of strategy , evencause the failure.Generally, enterprises regard government's factor as the external environmental factor(generally political factor ) to analyse while making strategy, and get the chance and threatthat enterprises may be faced now and in the future through analysing. According to relationsbetween government , enterprise and business strategy, the government does not merely existas a kind of political factor, there is more extensive meaning. The famous managementmaster Michael Potter has proposed five strength models as a strategy analyses tool ofdifferent competition strengths in the industry, however, he has not taken government's factorinto consideration in his tool and embodied the relation between the government and businessstrategy. So I introduce government factor on the basis of respecting Potter's original meaning,and set up the relation model of government and the key factors of business strategy .The function of government of our country and business strategy have unique relations because of theeconomic system of our country and particularity improved while making . Through analyzing the differentrelation between the government function and the business strategy making in the planning system and themarket system,it is proposed the questions that exist and maybe met by our country's enterprises in themarket system and the effect of the government on it in the market system,at the same time it is proposedthe ways to deal with the questions which should be adopted by the government. Today under theglobalization of economic, the making of business strategy is not effected by the governmentfunction only,it is effected by the foreign government function when making and carrying onthe business strategy regarding to the enterprises who take part in the international trade orcarrying out international strategy. So enterprises should consider the both when making thebusiness strategy.