Developing a Business Strategy

Developing a Business Strategy

Building specific strategies is an absolute necessity to increase the odds of success. A business strategy is a documented plan on how an organization sets out to achieve their goals. It contains several principles that outline how a company achieves its goals. Creating a business strategy may seem challenging but more manageable if broken into components. There are several factors to consider when creating a well-thought-out, achievable, and reasonable business strategy. The first component is determining where the company is. People often perceive themselves as where they want to be instead of where they are (Aileron, 2011). A SWOT analysis should be conducted to determine the position of the business. It includes assessing the internal and external environment (David et al., 2019). Conducting the company’s internal and external audits helps understand the marketplace, competitive environment, and organizational competencies (Aileron, 2011). From this analysis, you can determine the priority issues—those issues so significant to the overall well-being of the enterprise that they require the full and immediate attention of the entire management team” (Para. 6). This is crucial because it provides a focus for the strategy.

The second essential component is identifying what is essential. This includes focusing on the long-term business strategy of its vision and mission statement. This helps to understand the priority issues of the business so that the company can ensure full and immediate attention towards them (Aileron, 2011). The third component includes defining the business goals and objectives needed to achieve and address the essential business factors. By focusing on this, the company understands better how to achieve these objectives. The fourth component includes a regular review of the business strategy. It is important to note that the mission, vision, goals, and objectives may change over time. The same applies to consumer values, competitive environment, and technological capabilities. Therefore, regular reviews will enable businesses to continue making the best and most relevant decisions about the organization’s overall objectives.

One of the most common mistakes companies make while developing their business strategies is emphasizing the wrong things. A good example is the customer experience.

Paunovic (2017) states that improving customer experience is a top priority for 72% of businesses, while just 63% of marketers incorporate investment and strategy to help achieve a better customer experience. Almost every business globally believes that improving customer experience is crucial for success. However, the problem is that only 40% of businesses create strategies to improve customer experience. Without satisfied customers, the business will most likely fail. The vision and mission of an organization normally point out where it wants to be in the future and puts focus that involves achieving the customers’ needs. Therefore, all organizations must focus on creating a positive experience for the customer. Therefore, companies focusing on developing a positive customer experience should guide the organization towards making decisions that benefit them and their overall experience with the company.

References

 Aileron. (2011, October 25). Five steps to a strategic plan. Forbes. Retrieved from: https://www.forbes.com/sites/aileron/2011/10/25/five-steps-to-a-strategic-plan/#6fbb0f505464

Paunovic, G. (2017, December 6). The single strategy you need to fuel business growth right now.

Forbes https://www.forbes.com/sites/forbesagencycouncil/2017/12/06/the-single-strategy-you-need-to-fuel-business-growth-right-now/#3e7bca052c59

David, F. R., Creek, S. A., & David, F. R. (2019). What is the Key to Effective SWOT Analysis, Including AQCD Factors?SAM Advanced Management Journal (07497075), 84(1), 25–35.

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Developing a Business Strategy

In 150 words or more, what are three or four components of a well-thought-out, achievable, and reasonable business strategy? What mistakes do companies make when developing their strategies? These thoughts should be qualitative and generic – not discussing/ providing specific applications of how you may have gleaned competitive advantage (e.g., describing your business strategy).