A business strategy can be defined as the combination of all the decisions taken and actions performed by the business to accomplish the business goals and to secure a competitive position in the market.
It is the backbone of the business as it is the roadmap which leads to the desired goals. Any fault in this roadmap can result in the business getting lost in the crowd of overwhelming competitors.
The business strategy is a part of the business plan which is a part of the big conceptual structure called the business model. The Business Model is a conceptual structure that explains how the company operates, makes money, and how it intends to achieve its goals. The business plan defines those goals, and business strategies outline the roadmap of how to achieve them.
Different businesses have different goals and take different routes to fulfil those goals. These routes constitute the business strategies of these businesses.
While an objective is defined clearly in the business plan, the strategy answers all the whats, whys, whos, wheres, whens, & hows of the fulfilling that objective. Here are the key components of a business strategy.
1) Mission, Vision, & Business Objectives
2) Core Values
3) SWOT (strengths, weaknesses, opportunities, and threats)
4) Operational Tactics
5) Resource Procurement & Allocation Plan
6) Measurement
With the increase in the competition, the importance of business strategy is becoming apparent and theres a huge increase in the types of business strategies used by the businesses. Here are five reasons why a strategy is necessary for your business.
Whether youre looking to set new business priorities, outline plans for growth, determine a product roadmap or plan your investment decisions, youll need a strategy. Coming to the realisation that your organisation needs one is easy. Actually creating a strategy is a little trickier.
While it is easy to understand the definition of business strategy, sometimes its an uphill task to form and execute a successful one.
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