Wednesday, November 13, 2013

Steps Involved In Establishing Effective Business Strategy

By James Carter


Business strategy is a blue print of techniques to be employed by a given company in order to rectify some of the challenges they are facing in order to enable the company to grow to greater heights. It acts as the long and short term plan for the company. After achieving the desired result, it is necessary to also review the strategies as well. This is because the purpose of the strategy is to rectify a problem and to achieve the desired result.

Before setting up to creating a business strategy, it is important that the management must understand the following two things. The first one is to understand the challenges it is facing which prevents it from being profitable. The other one is the knowing and anticipating where you want the business to be in future.

The identification and the understanding of the fundamental may prove to be challenging if you do not know how to go about it. If you are not able to effectively identify the fundamental problem, then there is likelihood that the strategy developed will not be effective. Answering the question why is the way to go about the identification.

For instance, the poor sale may be as a result of poor marketing techniques or competition or even pricing. In order to reach at the fundamental problem, you should ask the question why until you reach a point where there is no further reason to answer the question why? After identifying the fundamental problem, it is now very easy to look into possible ways of addressing the problem. This then forms part of the strategy.

The solution must also be one which can easily be implemented. The first solution should be a general one which seeks to address the problem in general. For instance in a situation where the problem at the face of it is recording poor sales while the fundamental problem is as a result of the value of the products and the resemblance with other products.

The solution must be one which is realistic and achievable. At the same time it must be capable of addressing the problem. The first thing to do is to develop a major solution to address the general problem thereafter establish other specific solutions aimed at dealing with specific problems.

Specific solutions may include things like coming up with a new brand of the initial product, conducting a research to establish the expectation of the customers in the market and also coming up with effective ways of doing marketing to enable the customers know the existence of the new branded product.

The specific strategies are closely related and their overriding objective is to rectify the problem which affects the company. The objective of the strategy in this instance will seek to elevate the value of the goods and services in the eyes of the customers by knowing what they want and communicating the value of the products to the market in an effective way. This is the business strategy that works.




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