Steps in formulating business strategy

Techniques to structure, execute and monitor strategic projects. A proven approach to set, monitor and evaluate personal goals. What is lacking however, is a simple framework to integrate and align all of these different building blocks.

Steps in formulating business strategy

By Graeme Nichol Summary: Think of it as seven steps to doing a proper business plan, and revisting it each year. Businesses tend to avoid doing their annual business plan thinking that it is an arduous task that does not accomplish much.

Formulating your annual plan is, however, critical to your business success and if done correctly should be quick, easy and generate bottom line results.

Rather than creating a business plan that achieves no results, other than to gather dust, you should be writing a strategic and operational plan. Your annual plan needs to be strategic so that you know where you are going and what you would like to achieve from your business or division.

The plan needs to be operational so that it will tell you how to get there. It will determine the strategies and goals that need to be achieved to reach your end point. Strategic business planning is about deciding on the future you want for your business or division and then deciding how you intend to obtain that future.

If you have been in business for a number of years and your results each year are much the same as the year before then obviously something will have to change if you would like to see an improvement. It comes down to the saying: If you keep on doing what you have always done you will get what you have always got.

All too often business plans are created out of a corporate requirement rather than a focused result. This system of business planning has been proved to deliver results for over 20 years. Try something new and you may be surprised by the outcome. To achieve results it is important that each step is well thought out and no step is omitted.

Equally important is that the steps are completed in an open and collaborative environment that encourages learning and new ideas.

Step 1 - Vision and Mission Statements Businesses and divisions tend to ignore the importance of their vision and mission statements. These statements should tell you where you are going and why you are in business. A vision statement should paint a picture of the business you would like.

It should get you thinking about your business and dreaming about what is possible. A vision statement can contain what you would like to see in revenue in a number of years. You could want to become a "world leader" in something, or become a "specialist" in something else.

Steps in formulating business strategy

What would you like out of your company? Let it be more specific than flowery language that sits in your entrance foyer. A mission statement should answer the question as to why your business or division exists.

Why would someone buy your product or service? What makes you different from your competition? Who are you selling too? What problem are you solving?

Keep your mission statement short but answer why you are in business.

Steps in formulating business strategy

Ensure that your mission statement supports your vision. Ensure that it is concise and unique to your business. Try and capture your competitive edge and unique selling proposition in a statement that motivates.

Step 2 - Celebrate Successes We tend to be quick to criticize, slow to praise. But by recognizing your successes, you increase your confidence to move on to make new things happen.

What we have failed to accomplish always stands out in our minds, but our successes are where the opportunities lie. Take some time to think about what you achieved in the last year.

Whether it was reaching a goal you had set or handling a crisis that arose. A thank you from a client indicates a success as does appreciation from your staff.

Make a list of all the successes you achieved and find ways that you can expand on those achievements. If you do not analyze your failures they will probably occur again as you do not give yourself the opportunity to learn from them. You are your own best teacher, the best source of your own wisdom.

We never really need advice and hate it when we get it because we hate being told what we know already.Business Strategy Formulation: Theory, Process, and the Intellectual Revolution Anthony W.

Ulwick QUORUM BOOKS. Business Strategy to formulate a business, product or operational strategy. The first step in this. Marketing Research. Managers need information in order to introduce products and services that create value in the mind of the customer.

But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. Strategy Execution - The definitive guide - Jeroen De Flander Strategy execution: this is the ONLY tutorial you'll need to boost your business strategy & strategy implementation skills!

Developing a great strategy starts with changing the dynamics in your strategy room. Here’s how. Many strategy planning processes begin with a memo like the one below.

Such missives lead managers to spend months gathering inputs, mining data, scanning the marketplace for opportunities and threats, and formulating responses. During the process of formulating a new strategy, the organization’s top management team concluded that its primary competitive advantages were the strength of its brand and its ability to.

Here are 10 steps which guide you in deciding the strategy of your company. Steps 1 to 5 mainly involve internal or external research as well as very long term strategy making. 10 steps in strategy formulation. February 10, By Hitesh Bhasin Tagged With: Strategic business units.

Differentiation strategy.

The 7 Critical Steps to Formulating Your Annual Strategic Business Plan -tips and hints