Learn to formulate your Business Strategy in 3 steps! strategic planning
From start-ups to huge firms strategic business plan and regular update of the same ultimately decides the long run of any company. It has the power to make a new company skyrocket or a high-level company hit rock-bottom.
“A business strategy is a set of competitive moves and actions that a business uses to attract customers, compete successfully, strengthening performance, and achieve organizational goals.”
So, how to plan and where to start? Nexential is here to guide you with 3 simple steps that will help you get a complete overlook on how to build a strategy for your business.
Ultimate Focus of the Strategy – Profit
In business, the strategy begins with a focus on the highest level objective in private industry: Increasing brand value. In practical terms, most firms’ highest goal can be stated by referring to making/increasing their “profits.” It can differ from business to business but ultimately the generic business strategy, therefore, aims first to reach, earn, sustain, and grow profits.
Types – It’s never “a” strategy but “the” strategies.
Strategy discussions are sometimes confusing because most firms have many strategies, not just a single “business strategy.”
Analysts sometimes say marketing strategy when they mean the firm’s competitive strategy. And, a firm’s financial strategy is something different from its pricing strategy, or operational strategy. The firm’s many strategic plans interact, but they have different objectives and different action plans.
The Strategic Framework hierarchy.
The strategic framework is a hierarchy. At the top sits the firm’s overall (or generic) business strategy.
Firms in competitive industries answer the “how” question on a lite note through “competitive strategy” on how the firm differentiates itself from the competition, defines its market, and creates customer demand.
However, detailed and concrete answers to the “how” question lie in the lower part of the strategic framework, such as the marketing strategy, operational strategy, or financial strategy.
The marketing strategy, for instance, might aim to “Achieve leading market share.” Or, “Establish leading brand awareness.” Financial strategy objectives might include: “Maintain sufficient working capital” or “Create a high-leverage capital structure.”
In short, brainstorm the “Whys and Hows”, Why is that a goal or milestone and how are you going to achieve that goal or milestone.
Want additional help to formulate your business strategy? Feel free to connect with us here!
Share the post