Strategy making is a very essential part of any business simply because it is this that will help the firm achieve its objectives and become successful in the industry. Now making strategies is not a short time thing as it takes quite a long process before one would even come up with one. If one is interested in becoming a strategic manager one day, then these steps to creating a business strategy may help.
Now the very first thing that the strategic manager has to do would be to study the history and products or services of a firm to get a grasp of what it is like. After that, he should also study the mission, vision and values of the company so he knows the direction of this firm and where they are now. From there, he may proceed to create goals and objectives for it.
Now the goals are broken down into three parts namely the corporate, financial, and social goals. The objectives also have to broken down into financial, social, and strategic portions. Do take note that the objectives have to be specific, time bound, measurable by value and have to be directly connected to the goals that were made.
After creating some goals and objectives for the company, the next thing to do would be to look at their financial statements. This is extremely important simply because it will tell the strategist how the company is currently doing and how well it performed in the past. From there, he will be making an analysis based on the data that he acquired.
When he has identified how well the firm is doing, then the very next step would be to examine the outside environment or the industry. He will do this by making a PESTEL analysis that would take a look at how politics, economic situations, social aspects, legal aspects, and environmental aspects affect the company. After that, he also has to examine the competitive environment of the industry.
When that is done, one has to now look at the resources of the company. They have to look at both the tangible and intangible assets that the company has. From there, he has to make a SWOT analysis which will determine the strengths and weaknesses of the firm and the opportunities and threats that the firm will have in the industry.
Of course the meat of it all would be when the strategist would be making the strategies already. Now in general, he should choose a strategy that will enable the firm to make products that are of low cost, that are differentiated as compared to others, or even both. Once he has chosen which of those strategies he wants, then he may delve deeper by analyzing the elements of these strategies.
Now the very last step from here would be to know ask whether the company would be able to afford implementing it. Also, one has to analyze who the target market is and how to be able to cater to them. After all these steps are done, then one may now present this strategy to the CEO to see if the CEO will approve of this project.
Now the very first thing that the strategic manager has to do would be to study the history and products or services of a firm to get a grasp of what it is like. After that, he should also study the mission, vision and values of the company so he knows the direction of this firm and where they are now. From there, he may proceed to create goals and objectives for it.
Now the goals are broken down into three parts namely the corporate, financial, and social goals. The objectives also have to broken down into financial, social, and strategic portions. Do take note that the objectives have to be specific, time bound, measurable by value and have to be directly connected to the goals that were made.
After creating some goals and objectives for the company, the next thing to do would be to look at their financial statements. This is extremely important simply because it will tell the strategist how the company is currently doing and how well it performed in the past. From there, he will be making an analysis based on the data that he acquired.
When he has identified how well the firm is doing, then the very next step would be to examine the outside environment or the industry. He will do this by making a PESTEL analysis that would take a look at how politics, economic situations, social aspects, legal aspects, and environmental aspects affect the company. After that, he also has to examine the competitive environment of the industry.
When that is done, one has to now look at the resources of the company. They have to look at both the tangible and intangible assets that the company has. From there, he has to make a SWOT analysis which will determine the strengths and weaknesses of the firm and the opportunities and threats that the firm will have in the industry.
Of course the meat of it all would be when the strategist would be making the strategies already. Now in general, he should choose a strategy that will enable the firm to make products that are of low cost, that are differentiated as compared to others, or even both. Once he has chosen which of those strategies he wants, then he may delve deeper by analyzing the elements of these strategies.
Now the very last step from here would be to know ask whether the company would be able to afford implementing it. Also, one has to analyze who the target market is and how to be able to cater to them. After all these steps are done, then one may now present this strategy to the CEO to see if the CEO will approve of this project.
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