Having a well-defined strategy is indispensable for those who want to undertake. After all, it is through the strategy that it becomes possible to trace the directions of the new venture and all its developments through planning.
Published by: Cynthia Serva, January 2, 2015. Posted in: Exam
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According to Michael Porter, one of the leading contemporary experts in strategy and also a professor at Harvard Business School, strategy can be defined as the set of offensive or defensive actions for Create a position in a particular industry to successfully tackle competitive forces and get a greater return on investment.
In the business context, planning, or strategic thinking, is a continuous process of creating, implementing and evaluating decisions that guide and enable an organization to achieve its goals.
The strategy planning process must start from the definition of the company’s mission and objectives. Once you know where you wantto be, the next step should be to define how to get there, that is, the definition of the strategy and its consequences to achieve these goals!
If you are aiming to become a leader in your business segment, you need to define how you will achieve this goal. For example: Is it to grow the best to acquire competitors or expand by means of a franchise model?
There are many frameworks and different methodologies that can help you develop the strategy formulation process. However, the logic that must be followed involves the following points:
Set your goal
The starting point will be to define the mission, vision and values of the company. Define the purpose and where you want your company to arrive.
Make a market diagnosis
The next step will be to identify how your company can be impacted by the threats and opportunities of the external environment, not just in the present, but also in the future. That is, perform an external diagnosis!
Discover your strengths and weaknesses
Identify the critical success factors of your competitors so that you can make a comparative analysis of your strengths and weaknesses in relation to this competition. In this way, you will have made the internal diagnosis of your company!
Build an action Plan
Once you have identified the opportunities and threats of the environment in which your company is inserted, you can define the strategic objectives. In addition, you need to define an action plan to implement them.
Monitor every Step
Be sure to follow the implementation to assess whether it is necessary to review the strategy. Evaluate effectiveness by means of metrics and indicators that must have been previously defined. You can count on the help of some tools such as the Balanced Scorecard that will help you monitor and track your initial strategic vision.
In short, define your company’s mission, know your market and competitors, and from there develop or redefine your products and services. Only with all this information and establishing a vision of the future it will be possible to draw a really competitive strategy.