The vast and inaccurate use of the word “strategy” in various contexts of business conduct has made it almost a worn-out cliche. The origin of the word in ancient Greek is a general or an army commander. Indeed, strategy is a word borrowed from the military world and is currently being used in different contexts and in different content worlds. If one refrains from going into precise definitions, one can say that strategy is a broad operational plan of action designed to achieve goals and objectives, according to certain resources, constraints and values. Business strategy is actually the collection of decisions that are designed to lead the business to succeed and flourish in the particular industry in which it operates, to achieve the goals of the business and to realize its vision.
What does business strategy mean?
Business strategy deals with defining the target and the best way to reach it. A good strategy always enables the discovery of flexibility along the way and the ability to conduct a “re-route calculation” in accordance with changes in the environment, economy and competition that exists in the field of the business. Strategy is based primarily on the ability to look at the long term, taking into account the resources you have, the values you want to guide your actions, all with the intention of achieving your goals.
What are the advantages of formulating a business strategy?
When the business strategy is established and the business is conducted accordingly, both the achievement of long-term goals and the day-to-day business conduct will be affected by it at the end of the day. Formulating a business strategy will help your business:
- In streamlining procedures.
- Identifying and exploiting appropriate business opportunities.
- In deciding on proper investments within the business.
- In dealing with business challenges and threats.
- Will also ensure control of situations of uncertainty and unexpected situations.
- Will lead to proper resource allocation.
- And more …
What are the factors that make up the business strategy?
A business strategy must include reference to long-term factors that influence the business’s success and prosperity. Typically, we would like to consider the following factors:
- Mission of the organization.
- Business vision.
- Plans for the future.
- The markets in which the business operates.
- The customers to whom the business addresses.
What are the important questions that need to be asked in order to formulate a strategy?
A good strategy that suits your business and needs must be based on the most accurate recognition and understanding, who is the business, where it is now, where you want to lead it, and what resources and limitations are there. In order to actually delineate what “big” words such as “vision” or “mission” consist of, you can use guided questions:
- What is the product or service of the business?
- Who are the customers of the business?
- Who are the competitors of the business?
- What is the relative advantage of the business over the competition?
- How is the marketing structure of the business conducted?
- What are the values of society and its vision?
- Where would you like the business to be in five years?
How will you implement the strategy?
Have you formulated a business strategy? Excellent. This is definitely a very important step on the way to doing business wisely. Now, the next step will be to implement your strategy in practice. Of course, there is no benefit in having a strategy that brings up dust in a drawer. After formulating your business strategy, you must transform it into an operational plan that includes a series of concrete goals and actions that will be carried out within a certain time frame in the business. Precisely for this reason, defining the tasks and goals of a business must be logical and applicable. As an organization, the values and vision of a business must be something that business people and their customers understand and can connect to, to become an integral part of realizing the strategy and turning it into reality.