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How to Build an Effective Business Strategy?

by Shamsul December 9, 2022

How to Build an Effective Business Strategy?

Our business environment is highly competitive and it is getting more competitive with the passage of time. Business leaders use several tactics in order to achieve their short as well as long-term business goals. They are extremely obsessed with tactics and business strategy is one of them. If you have a solid business strategy, you don’t need to spend extra time and money to accomplish your long-term business goals.

A business strategy helps you accomplish your short as well as long-term goals. It keeps you on the right track and also enables you to execute your plan more efficiently. In this article, we will talk about business strategy and how you can build an effective business strategy. Let’s get started!

 

Business Strategy

Basically, it is a roadmap for accomplishing your business targets or objectives. It is a set of tactics or principles that continuously inform you about your business actions, priorities, and decisions. The aim is to achieve your business goals. You should include your vision and mission in your business strategy. For example, if you work to become a global brand then you should add it to your business strategy along with how to make it happen. No matter what your business goal is, you need to develop an effective business strategy.

How to Build an Effective Business Strategy?

1. Identify Your Business’ Core Values

No doubt, setting traditional goals allows you to measure your business progress, but it does not give an idea of how to do it. If you want to concentrate on your business process and purpose, it is essential to set an aspiration when building a business strategy. It motivates you to do your work in a better way so that you can achieve your business target. You should also identify your business’ core values if you want to produce customer-centric products or services.

 

2. Self-Assessment

Self-assessment is essential to identify your strengths, weaknesses, opportunities, and threats. For this purpose, a SWOT analysis is the best self-assessment tool. By conducting this analysis, you can find growth and success opportunities for your business. This analysis helps to identify all four factors that we have mentioned above.

 

3. Identify the Segment You Want to Capture

Targeting the entire market with a particular product and service is impossible. That’s why it is crucial to pinpoint the segment you want to capitalize on. In this way, you can effectively target a specific segment to increase your sales and expansion. You can easily build a loyal customer base by identifying your target market.

 

4. Determine How You Will Beat Your Rivals

In the business world, there is an unending race going on. You have to run to stay ahead. To give your competitors a tough competition, you should make an effective business plan. But, you need to determine your main competitors first. You should learn how to become competitive in the market. In order to stay ahead, you should introduce innovation in your products or services. You have to develop an effective marketing strategy to become prominent and to influence customers. You should revise your pricing policy to stay relevant.

 

5. Set Goals

In this step, you have to set particular business goals that you want to achieve. This process requires research and hard work. Determine what you want to accomplish. Find out how your departments can help you achieve your goals. For this purpose, you should set the following:

Business goals

Team or department goals

Employee-specific goals

 

6. Make a Solid Plan

After successfully completing the above steps, now is the right time to make a solid plan. It is imperative to add actionable tasks to your plan that you and your workers can achieve. Depending on the type of business, you can make a short-term as well as a long-term plan. Moreover, you should track your progress to check whether your plan is working or not. You can also make adjustments later.

 

7. Identify the Factors That Can Keep Your Business Strong and Successful

In order to make your business successful, it is essential to find out all the aspects of your business that can keep you on the winning side. Skill and talent are both important in this regard. You should determine how to create opportunities that can help you accomplish your goals. Whether it’s about hiring a talented staff or investing more in R&D, you have to determine everything to make your business fruitful.

 

8. Determine How You Will Hone Your Competencies

If you are running a big business, then your managers are extremely crucial. You should invest in their training in order to hone their skills. Their talent, passion, and skill can make your company a successful business. They can play a big role in developing and inspiring your workers. Fulfill their requirements so that they can maintain a friendly environment between themselves and workers. On the other hand, you should enhance your manufacturing capabilities by investing in technology. The use of technology can bring you to streamline your business operations. In short, refining the skills is necessary to succeed.

 

9. Track Your Results

After setting goals and making business plans, it is important to track your progress. This is necessary to obtain the desired results. You can monitor your results daily, weekly, or monthly. This is important to find out that everything is going as planned. Identify your data in order to ensure that your workers are meeting KPIs (Key Performance Indicators). If they aren’t meeting, then you should find a solid solution to tackle the problem.

 

10. Be Flexible and Always Ready to Accept Change

After measuring your performance, you now have a clear idea about your shortcomings. You can make a strategy to make changes in order to overcome the issues. Also, identify the internal and external factor of your business and their impact on your business. It is a big opportunity for you to adapt your approach. Moreover, be ready to accept change and be flexible.

 

11. Consider a Business Consultant

If you think it is difficult for you to make a business strategy, then you can consider getting the services of a business consultant. They can help you build an effective business strategy. Business consultant use their expertise and skills to build an effective business strategy for you. They can also guide your managers and business strategy makers. The biggest advantage of hiring a business consultant is that it will provide an unbiased opinions and business strategy. So, it is a big advantage of hiring a business consultant to build a business strategy.

 
 

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What is Business Strategy and Its Importance

by Shamsul December 7, 2022

What is Business Strategy? Definition, Levels, and Importance

When it comes to successful businesses, there are many in the world. Several factors play an essential role in the success of big corporations and companies. But, a solid business strategy is a key factor that plays a vital role in a company’s success. In this blog, we will talk about business strategy, its levels, and its importance. When it comes to business goals or objectives, every business has different plans. They develop an effective business plan to accomplish their goals. Let’s talk about business plan in detail.

 

Definition of Business Strategy

A business plan that includes all the important decisions and actions for accomplishing the company’s goal is called the strategy of the company to do business. It is elementary to understand the business plan. Plus, it is easy to create and execute. If you know how to execute a strategy successfully, you can make your company stand out from the crowd. In simple words, a business strategy is the main support of every company. It helps to keep the business on the right track.

 

Importance of Business Strategy

If you are planning to start a new business or already running a business, This is the major aspect of every business that can’t be ignored at any cost. By making a solid plan for your company, you can get the long-term sustainability of your business. Today’s business environment is very competitive and it has been growing with the passage of time. Below, we have highlighted the importance of devising a strategy. Keep reading!

When you plan to start a business, it requires a lot of planning. By building business outlines, you can stay on your goals. In this way, you can effectively execute your business plan.

When managers make the company’s strategy, it allows them to identify their strengths and weaknesses. They can also conduct a SWOT analysis to determine their opportunities and threats. It is a great way to make your business plan stronger.

Make sure that every aspect of your business must be included in your working plan. As a result, you can make effective business plans and strategies. Every team member is aware of your business goals and targets. In this way, you can assign tasks accordingly.

A fool-proof business strategy helps you to get a competitive advantage. You can make unique products and services to attract your potential customers.

This plan gives full control to business owners over the whole business process. They can make adjustments and changes accordingly.

Business Model vs. Business Strategy vs. Business Plan

 

There is a big difference between business strategy, business plan, and business model. A business plan encompasses a business strategy. But, business plans and strategies play important roles in a business model. A business model includes factors like how the company will operate, earn a profit, and accomplish the desired goals. A business plan provides a complete understanding of how to achieve all the business targets.

 

Levels of Business Strategy

Different businesses require different levels of strategies. It is necessary to deploy different business strategies to varying levels of a business. You can implement the right strategy according to the company’s goals and objectives. There are three common levels of business strategy. Below, we have mentioned them in detail.

 

Corporate Level

This is the supreme level of a strategy. It contains the company’s objectives and the way of achieving them. In simple words, this level explains the organization’s objectives, mission, and vision.

 

Business Unit Level

This level includes different types of business strategies for every unit. The reason is that each process and operation requires different types of actions and plans. So, it is crucial to deploy different designs for every business. But ensure that every strategy aligns with the company’s objectives and goals.

 

Functional Level

Departments such as finance, sales, operations, and marketing are responsible for creating business strategies at the functional level. They are essential to run the company’s day-to-day functions smoothly. The purpose of making strategies is to achieve a common goal.

Important Aspects of Business Strategy

A company’s business strategy includes several factors in the form of how, where, what, and why. If you have leadership qualities, you can make a strategy. They understand the business aspects of the company in a better way. Here are some major aspects of business strategy:

1- The first element is the objective, mission, and vision.

2- The second element is the fundamental value of the business.

3- The third element is a SWOT analysis which helps to highlight the strengths, weaknesses, opportunities, and threats.

4- The fourth element is the operational policy.

5- The fifth element is the allocation of resources and tasks.

6- The sixth element is tracking progress.

There are so many ways to develop an effective business strategy. It includes all the essential factors and aspects that can keep your business on the right path. So, if you are a business owner, you should develop a solid business strategy for your company. It is imperative to take a competitive edge over your competitors.

 
 

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What is the Business Strategy – Outline of the Plan and Actions

by Shamsul March 13, 2022

What is the Business Strategy?

 

Business Strategy


A business strategy is a framework for making decisions about how you are going to run your business. However, don’t navigate without a compass; learn all about:

Business creation
Innovation
Communication strategies
The tools and methods.

Company strategy: fundamentals and approach to follow


The cornerstone of any business, large or small, is its strategy.

A business without a strategy is like driving in unfamiliar territory without any road map.

The term strategy was born in 1794, thanks to the general and military strategist Friedrich Wilhelm Von Bûlow. Several schools of thought have emerged from it.

What is the Business Strategy For?


The rapidly changing economic and technological context means that managers and directors of companies must make decisions and anticipate their next actions accordingly.

The choice of strategy and its implementation are decisive for the success of organizations.

Corporate Strategy files
Business creation
Innovation
Communication strategy
Strategy Tools and Methods
Tools and Methods

Definition of the Business Strategy


A business strategy is a framework for making decisions about how you are going to run your business further.

These decisions, which are made daily, range starts from investments to operational priorities, including marketing, recruiting, and brand promotion efforts.

Indeed, without a strategic framework to guide these decisions, the organization will run around, accomplish little, squander profits, and suffer enormous confusion and discord.

Starting with the idea of ​​creating a business, any business owner asks the following questions:

1- How to turn an idea into a Business Model
2- How to conduct a market study in order to validate the commercial feasibility of a project
3- How to make a business plan and seek funding?
4- What does the strategic corporate approach consist of?
5- Any strategy begins with preliminary steps before translating into a measurable action plan.

 

The 6 Phases that Make up the Strategic Approach


There are six main phases to setting your direction, thus building an approach, developing it, and controlling it:

Business Diagnosis

It is about designing, as a first step, a prospective approach (desired state) that considers the overall scope, namely the culture and the will of the leaders, which is translated into strategic objectives.

After “wanting to do” comes “know-how”. This step follows on from the first, focusing on the current state of the business and its environment from a macro and then a micro perspective.

Gap Analysis: Desired State VS Current State


This phase consists of analyzing the origin of the differences between the desired state and the current state to identify the key factors for the business’s success.

Moreover, these are decisive for the success of the company in the medium and long term.

However, it is necessary to think of identifying the strategic problems to be solved.

Assessment of Strategic Options


Depending on the resources of the company, the possible strategic solutions should be assessed. Certainly, taking into account technical, human, and financial resources.

Choice of Strategy


Once the solutions have been evaluated, you can choose the strategy that will achieve the objectives.

This is done while respecting the capacity of the resources made available to the company.

Implementation of the Strategy


Now is the time to think about the “how-to”.

During this phase, you naturally move on to implementing your strategy.

An operational action plan is necessary to deploy the strategy over the medium and long term: from 3 to 5 years as a rule, while taking into account the allocated annual budget.

Strategy Control


Once the strategy is in motion, it is always relevant to take a step back in order to ensure the achievement of the set objectives.

Now is the time to assess the gaps between the expected and achieved results.

With the alert function, a dashboard can be defined to allow immediate diagnosis and permanent control.

This table generally contains between 5 to 10 performance indicators. Its effectiveness lies in the speed of the company’s reaction to its competitors.

In short, the strategic approach can be summed up in an iterative process. At each stage, it is necessary to verify the good adequacy of the resources to the objectives and make adjustments if necessary.

Efficiency and Performance


Don’t just focus on your technical development. Know that it is also important to ensure your:

Personal development
Your communication
Time management
Team management
Ability to solve problems
Soft skills

THE EFFICIENCY AND PERFORMANCE DOSSIERS

Efficiency, productivity, and performances are essential skills and tools.
Indeed, the success of any business depends on the first condition, efficiency, and performance.

From a macro perspective, economic activity is based on trust between individuals in organizations. Therefore, it remains a determining factor in collective performance at work.

These days, diplomas and certifications no longer have any value next to soft skills. Indeed, it is important to have the hard skills, the know-how, and inter-relational intelligence, the interpersonal skills.

A subtle mix between know-how and interpersonal skills is a key success factor for any individual, able to climb the ladder in the professional world.

This topic aims to help you ask yourself the right questions for your professional development.

Efficiency and Performance files
Personal development
Public speaking
Communication
Time management
Team management
Soft Skills
Problem solving


What Skills are Necessary for Efficiency and Performance?


The relationships between individuals within an organization are certainly the most complex to manage.

In fact, relationships touch on the human dimension, both professionally and psychologically.

Hard skills, and soft skills, these “fashionable” words, continue to abound in the professional and social sphere. What are the most important, on which we should work to gain productivity?

“No stone can be polished without friction, no man can perfect his experience without trial.”, a Famous quote from Confucius, who is the first educator and philosopher of China.
Any technical or personal skill is acquired in the event. Being aware of it and developing it are the two conditions necessary to gain effectiveness, efficiency, and performance.

It is now essential to:

Successful Time Management


However, there is no doubt that time management is a determining factor for the success of any individual.

This is the skill we show the most aversion to, either through unwillingness or because of procrastination.

“A lot of the stress people feel isn’t because they have too much to do. This is because they don’t finish what they started” quoted David Allen in his book, “GTD Method”.


Find Out Here How to Tame and Manage your Stress.

Efficiency and productivity in time management come naturally when you learn to plan tasks, delegate, and procrastinate less.

Learn Team Management


Team management, often inseparable from leadership, is a key skill in project management.

In order to effectively manage the activities of your teams as a project manager, you should, first of all, understand the needs of your collaborators, motivate your team throughout the project, train them, evaluate them, and manage their conflicts.

According to Jean-Claude Grunler, a specialist in interpersonal relations and co-founder of the firm “Human Capital Development,” “we have entered the third dimension of management, which emphasizes the ability to communicate to mobilize energies and skills. “


Master Internal Communication Techniques


There are many internal communication techniques. Moreover, they all contribute to the achievement of a single objective, the development, and the performance of the company.

Knowing how to communicate means knowing how to negotiate with stakeholders. On the one hand, organize effective meetings, speak in public, and on the other hand, lead your team towards efficiency and performance.

Indeed, each of our interlocutors has their own professional identity, which corresponds to their social and professional role within the company.

This identity is conditioned by the culture of communication. Of course, this encompasses, among other things, active listening, negotiation, and humor.

Therefore, it is essential to put in place a strategy that implements a set of internal communication techniques to maximize the chances of achieving your goals.

Free yourself from Problem Solving

When you undertake to interact with the stakeholders of your projects, it is essential to be able to decode the signals exchanged through your communication.

Silence, withdrawal, or an aggressive reaction to someone’s words are alarming signs that will call on your conflict prevention and management skills.

Once problems are triggered, how do you react to different situations: adapt to them, dodge, respond, or intelligently remedy them?

Different tools dedicated to these issues, like brainstorming, the Ishikawa diagram, the decision matrix, or the 8D method, are examples of backup tools.

Find out here how to find a solution to any problem.

Conclusion


In short, the efficiency and performance of an organization intrinsically depend on the ability of employees to implement a deliberate preventive strategy.

Competition, or a change in a company’s external or internal context, requires us to develop technical and human skills to adapt to it appropriately.

Poor management of material resources – idleness and waste – and human resources is arguably the number one enemy of the efficiency and performance of any business.

 
 

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Business Strategy – Its Components Levels and Examples

by Shamsul October 22, 2021

Business Strategy – Its Components Levels and Examples

Every business has its distinctive goals and it takes unique ways for a business to achieve those goals. These unique ways comprise the business strategy of each specific business.

Although the definition of sounds simple to understand, it is difficult to establish one and even more challenging to accomplish a fruitful one.

This article will help you understand the business strategy in a better manner.

Definition of Business Strategy

A business strategy is a set of all the routes chosen and measures the business takes to realize business goals. Also, gain a competitive position in the market. 

It is the cornerstone of a business as it is the master plan which leads the way to the required goals. Any flaw in this master plan can cause a business loss in the herd of stupendous competitors.

Why is Business Strategy Important?

A business goal without a well-planned strategy is just a fantasy, and it is like gambling if you set foot into the market without an effective working plan.

In an environment of increasing competition, the significance of business strategy is becoming evident. Here is the rationale for the importance of business strategy for a business.

Part of Your Business Plan is an element of your business’ groundwork that is your business plan. While the groundwork sets the aims and objectives, the strategy provides you with a path to achieve that aims. It is the scheme to reach the targeted plan.

Helps in Learning about Your Strengths and Weaknesses

When you formulate your business strategy, you learn about your strengths and weaknesses most of the time. Furthermore, it helps you take advantage of knowing what you are good at and utilizes that to conceal your weaknesses and try to overcome those weaknesses.

Makes Your Business More Effective and Efficient

When every move is pre-planned, each resource is allotted, everybody is conscious of their roles. Then every business action becomes more effective and efficient spontaneously.

Gives You a Competitive Advantage

A business strategy brings into focus taking advantage of the business’s strengths and utilizing it as a competitive advantage to strengthen your company’s position in a distinctive way. It gives recognition to your business and makes it unique in the customer’s eye.

Controls the Business Activities

Business strategy also helps in deciding the path to follow and achieve the milestones. It makes it easy to direct the business activities and administer if they are progressing as planned.

Difference between Business Strategy, Business Plan & Business Model

The business strategy is an essential element of the business plan, a component of the more considerable conceptual structure known as the business model.

The business model is a conceptual framework that describes how the business works, makes profits, and how it plans to accomplish its goals. An effective business plan clarifies those goals, and business strategy contours the roadmap of how to attain them.

The Three Levels of Business Strategy 

The business goal is accomplished by the successful implementation of various business strategies. While every team member, partner, and stakeholder of the organization focuses on achieving a single business goal, their actions are defined by different business strategies according to their level in the company. 

Business Strategies – Categorized Into Three Levels

Level 1- Corporate Level

The corporate level is the broadest and the topmost level of the business strategy. It sets the directions to accomplish and how how to achieve the target. It sets the goals, vision, and corporate objectives for every stakeholder.

Level 2- The Business Unit Level

This level has the specific strategy of a particular unit that varies for various units of business. A unit can be a specific department, channel, or product that has completely unique operation. These units form strategies to distinguish themselves from the competitors using competitive strategies and line up their goals with the overall business goal as defined in the corporate level strategy.

Level 3- The Functional Level

Various departments of the unit set the functional level strategy. The departments incorporate but are not constrained to sales, marketing, finance, operations, etc. Functional level strategy is limited to day-to-day activities and decisions required to deliver corporate level and unit level strategies. It maintains connections among various departments and achieves functional goals.

The Key Elements of a Business Strategy

The goal is defined clearly in the business plan; the strategy is the key to all the questions related to the execution of that goal. Now, let us discuss about the key elements of the business strategy.

Vision, Mission & Business Objectives

The business strategy focuses mainly on fulfilling the business objectives. It gives your business a vision, direction, and guidelines. It provides a clear direction to perform duties, when and how it needs, and who is responsible for it.

Core Values

Core values define the ‘must’ and ‘must not’ of a business. The core values of a business clarify the doubts and thus show a clear way to the units, top-level, and the departments.

SWOT Analysis

The SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is an idea of an organization’s current condition. Therefore, it is an essential element of a company’s business strategy. It shows the strengths and opportunities that can be useful to the company; and the weaknesses and threats that the company should be careful of.

Operational Tactics

Functional and unit strategies deeply involve the operational details leading to the most effective and efficient work methods. It saves sufficient time and effort as every person knows what is the requirement to achieve the goal.

Allocation Plan & Resource Procurement

The strategy also guides you about the procurement of the needed resources, their allocation plan, and stakeholders.

Measurement

A business strategy is of no use unless some controlling measures access the viability of that plan. A good business strategy always incorporates the methods to track the business’ output and functioning against the set goals.

Examples of Business Strategy 

Creation of New Market

Hubspot established and accomplished a unique strategy where it designed a market that was not even existed- inbound marketing. Indeed, it has created an online resource guide that describes the restrictions of interruption marketing and informs about the advantages of inbound marketing. The company also provided free courses helping the target audience understand its offers better.

Buying the Competition

Facebook adopted “Buy the competition” strategy and this buy the competition strategy of Facebook has proven to be very successful. It is all about buying the innovator or the competition instead of creating its own innovation to compete with it. There are many remarkable acquisitions by Facebook, including Instagram and WhatsApp, to increase its reach and user base.

Cost Leadership

OnePlus launched OnePlus 6T in India with features similar to iPhone X but at a price that is half the price of an iPhone X. Thus, this strategy worked like a wonder for OnePlus and made it the top phone brand in India other countries.

Product Differentiation

Apple distinguished its smartphone’s operating system by making it more straightforward as compared to the iOS of an android phone. This step differentiated the company and established its followership. Apple follows a similar strategy for its other products too.

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