Patrick’s Post
What are three or four components of a well-thought-out, achievable, and reasonable business strategy?
A business strategy is initiatives a company executes to create value and grow the business. The first component of a well-thought-out, achievable, and reasonable business strategy is a self-assessment of the company. According to Aileron, “”for an accurate picture of where your business is, conduct external and internal audits to get a clear understanding of the marketplace, the competitive environment, and your organization’s competencies (your real—not perceived—competencies)” (Aileron, 2011). A SWOT analysis can assist a business in identifying these factors to build the foundation of a successful strategy.
The second component is determining the long-term vision for the organization. This is the mission of the company and provides the basis for all future decisions while providing a sense of purpose to the workforce. ““You do need to develop an overall vision for your company – one that is strongly supported by a more targeted strategy at each business that falls under your umbrella” (Uggla, 2015).
The third component are the goals and objectives of the company and assigning actions to achieve the plan. It is important that people are accounta
ble to the plan, so the organization stays on track. According to Gallup, only 13% of personnel are engaged at work and to be successful people must be accountable (Basit, 2021).
The last component is regularly reviewing the plan and assessing if updates are required to address market changes.
Review of the final strategy on a continual basis will ensure success and mitigate wasted manhours and production time. Goran Paun said that “customers are only human, and they will change over time”, so it is important a company continually revisit their strategy and track against performance measures to see if updates are necessary (Paun, 2017).
What mistakes do companies make when developing their strategies?
Developing a successful business strategy is hard and many companies will make mistakes in their strategic planning and execution. According to Benard Marr, there are ten mistakes that companies often make and these include resting on your loreals by assuming success in one year will translate to another; developing an overly complicated plan; not understanding your customer; not thinking about your competitors and market changes; lack of workforce buy-in; bias of weaknesses; not establishing metrics; lack of data; and not continually reassessing where you are (Marr, 2023).
Works Cited