business
Dec 27, 2020Dec 27, 2020 at 10:32pm
A business has to always have a strategy in order to be successful in their company. Business strategy provides a structure in how to achieve your main goal at its highest potential. It helps a company grow, be competitive in their market and helps to be financially sound. Furthermore, a business strategy gives you a strong potential in achieving your purpose. “ A business strategy is a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives. A good strategy provides a clear roadmap, consisting of a set of guiding principles or rules, that defines the actions people in the business should take (and not take) and the things they should prioritize (and not prioritize) to achieve desired goals” (Watkins, 2007).
The components of a well-thought-out, achievable and reasonable business strategy is to first understand and establish your place in business. According to Aileron, (2011) “Focus on where you want to take your organization over time. This sets the direction of the enterprise over the long term and clearly defines the mission (markets, customers, products, etc.) and vision (conceptualization of what your organization’s future should or could be)” (para. 2). Knowing your budget so you can operate the business effectively to achieve and strategize in order to gain the end result. “Also, too enhance the needs of your consumers and attract new markets, a business must focus on strengthening the customer experience as a top priority influencing its marketing strategies. To accomplish this, a brand will need to focus on improving both online and offline customer experiences by leveraging new technologies, tools and strategies to drive revenue and create meaningful relationships with customers” (Paunovic, 2017).
The first mistake a company makes when developing their strategies is not too have everyone on the same page in order to execute the plan. “Another mistake would be not identifying market trends, a brand can begin to fully understand the expectations and needs of customers. Beginning with a review of customer-facing assets, companies can uncover important information, including purchasing patterns, pricing trends, differentiation points, features and benefits and so on. These answers inform the positioning of a brand in the market and how it is portrayed alongside its competition” (Paunovic, 2017). Third mistake would be knowing your customers what your customers needs are. In order for this to happen you would have to understand your geographic area and a certain demographics can help achieve the plan. Following the trends such as implementing technologies and engaging with online advertising can help your company grow as well. A business strategy will develop your company in so many ways and following your plan step by step can help you reach your goal.
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/#3199e5254645
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/#35b9fdd42c59
Watkins, M. (2007) Demystifying Strategy: The What, Who, How, and Why https://hbr.org/2007/09/demystifying-strategy-the-what
Jan 1, 2021Jan 1 at 8:59am
What are several components of a well-thought-out achievable, and reasonable business strategy?
Do many businesses install several components that go into establishing an achievable and reasonable business strategy? The primary focal point that companies should focus on is by determining a business strategy on where the industry is heading currently and in the future forecast. Questions should raise whether the company is profitable or is in a competitive state. Would it be wise to invest money in new initiatives to expand those types of questions? A business needs to conduct a SWOT analysis to know where they are because it addresses the internal and external factors which provide a detailed understanding of the industry, competitive environment, and liabilities issues. Another factor is identifying the priority focus of the company’s mission, vision, and long-term goals. According to Aileron (2011) Based on this analysis “you can determine the priority issues, issues that are significant to the overall well-being of the enterprise that requires the full and immediate attention of the entire management team. Another critical area to address is pinpointing what market product to focus on and determine the consumer’s desires. The company must have a beginning and end goal; without this focus, the business cannot develop a business plan that is valuable and reliable. Another critical aspect of achieving a reasonable business strategy is encompassing various ideas and having good communication dialogue between all players that contribute to implementing ideas for business strategies, “The ability to review the system consistently and adapt and make changes to the system when and where need be is required to a well-thought-out and achievable strategy (Aileron, 2011)”.
Companies will make mistakes in developing business strategy. One primary one is not focusing on the customer service aspect of the developmental plan. The lack of focus in these areas probably will affect the company’s overall view of consumer satisfaction and what the public is looking for as a product. Reputation can either make or break a company, so if a company’s reputation affects customer satisfaction, it will impact profitability.
Reference
Aileron. (2011) Five steps to a strategic plan. Forbes. Retrieved from
https://www.forbes.com/sites/aileron/2011/10/25/five-steps-to-a-strategies-pla (Links to an external site.)n/3996454054645
