What is a business strategy?
A business strategy is a policy for a single business to establish a competitive advantage within its domain. While company-wide strategies refer to strategies that bundle many businesses, they often refer to individual business-level strategies.
An individual business strategy is a basic framework for fighting and winning in a specific business in a specific competitive environment. Further fine differentiation if, sales and development, production, such as function sector strategy, and include such regional strategy. Management philosophy and vision under the company-wide strategy was formulated, but it is a business strategy and at the same time there is a flow that will be decomposed into a separate business strategy from the development of company-wide strategy or to expand the possibility of, company-wide strategy change of there vision is also flowing to the on such or affect. A two-way process that repeats this process completes the overall strategy of the company.
1. Setting objectives and quantitative targets
The first thing to do is to set objectives and quantitative targets., Set quantitative targets. You can think of “achieving the goal itself” as the “purpose of the business”, but if the “purpose” is not clear, the “goal” will eventually be blurred, and it will not work later.
When setting objective / quantitative goals, set specific goals that the entire business division is satisfied with, rather than ambiguous goals. And you need to be clear about what your business strategy is for. While working on setting objectives and goals, you can follow the ‘SMART’ technique.
2. Current situation analysis
After clarifying the purpose and quantitative target, perform “current situation analysis”. “Current status analysis” is a very important process of business strategy and will have a great impact on future plans. The content to be analyzed differs depending on the business content, but we analyze the position of our company in the industry in which we operate, consumer trends, our brand image and competitiveness in the market, comparison with competitors, etc. I will. By analyzing the current situation of our company, we will carefully examine and analyze the market share of our products, as well as the strengths and weaknesses when comparing our company with our competitors.
You also need to analyze how consumers feel about your products and services and what their needs are. This is a very important process for clarifying the direction of business strategy.
3. Formulation of direction
By analyzing the current situation in the second step, you will be able to predict “what is necessary as a strategy”. Based on these data, we will consider the direction of our business outside the company by comparing the trends of the market and consumers, and our competitors. Furthermore, regarding our products and services, we will deeply dig into the strengths and weaknesses and consider the direction.
In addition, when formulating a business strategy, it is necessary to prepare not only one direction but also multiple directions. This is because a strategy can get bogged down with just one direction. No matter how specific the direction of business strategy is formulated, it must be assumed that it will not be as formulated. When such a situation occurs, you can avoid the worst by developing multiple strategies. A business strategy that focuses on only one direction may not succeed in that direction, so consider multiple directions.
4. Feasibility study
The fourth step is the “feasibility study”. “Feasibility study” means investigating and examining the feasibility of a business strategy in advance. The third step, “Developing Directions,” sets out directions for multiple business strategies. At this stage, we will work to determine which direction is likely to be feasible among multiple strategies. From among multiple strategies with different directions, we will apply directions that have more feasible possibilities and select the one that shows the appropriate method as a business strategy.
In the “feasibility study,” we will discuss the costs, expected results, feasibility, etc. of the selected business strategy, conduct simulations, and objectively evaluate each direction. Ultimately, we will clarify in which direction we will proceed with our business strategy.
5. Formulate and implement measures
In the fifth step, we will implement the business strategy that has set the appropriate direction in the fourth step, “Feasibility Study”. Specifically, we will formulate and implement the contents of the business strategy into feasible measures. Just formulating a business strategy will only indicate the direction, so it is necessary to make it concrete.
For multiple measures, first, prioritize them based on their importance and urgency. Then we decide on a schedule and implement it as a business strategy. There are several ways to formulate a business strategy, but the business strategy is formulated step by step through discussions and meetings within the business division.
Business strategy framework
Appropriate situation analysis is essential for business strategy. However, it is difficult to formulate a business strategy simply by collecting information in dark clouds. Data needs to be collected over some time to help businesses plan their projects and strategy. Perhaps some businesses would benefit from using strategy execution software from https://www.prosymmetry.com/strategy-execution/ to help them analyze their situation and make appropriate decisions.
PEST analysis
Analyzing the external environment is important in business strategy. Since there are many parts of the external environment that cannot be controlled by the company, it is possible to formulate a business strategy by analyzing the external environment. PEST analysis is an acronym for “Politics” in politics, “Economy” in the economy, “Society” in society, and “Technology” in technology. It is a method of analyzing from each external environment.
