Business strategy development has evolved through 5 key stages over the years. Business strategy development started with a focus on financial planning in the 1950s, moving to sustainable business planning in the 1960s, to strategic planning in the 1970s and eventually to a focus on strategic management in the present day. Much of corporate strategy is based on ideas in the 1970s, in which the core theme was around thinking strategically to beat competition and the business frameworks of alternative strategies, portfolio analysis, and the BCG Growth Share Matrix were developed. Today, the strategic development theme is on integrating strategic planning and implementation with a stress on the key concepts of core competencies, strategy planning and execution, and balance scorecard analysis. Changes to strategic mindset represent an ever evolving, new thought leaders, and introduction of disruptive technologies and changes.
Within the strategy development process, it is always critical to conduct rigorous market analysis. Understanding what is a market analysis involves supply analysis and demand analysis, which includes segmentation and segment analysis, understanding consumer buying behavior, and historical analysis. Comprehensive business market analysis involves defining the market and the study scope, understanding the core business issues, and planning for the future. Remember that you should evaluate what makes a market unique, such as a high degree of regulation, high competitive fragmentation, and importance of R&D. There are a number of market environment analysis characteristics, including ones that are socio-demographic, economic, legal, technological, and current trends. There are also several market place evaluation factors, including market sizing, pricing changes, research and development, market place characteristics, market force structure, and current trends.
Strategy development is a broad but integral part of any organization, big or small, and therefore, there are a number of business practices geared towards this functional area. The evolution from your current state to your desired end state is a matter of strategy development and execution of that strategy. Even though the end objective of any strategy is winning, it involves a number of important pieces, including defining your companys value proposition, competitive strengths, and business transformation. To begin with business strategy development, you should determine your strategic challenges by defining where you want your company to be, how you can bring your business there, and where you currently are.
Developing a familiar with how to develop a business strategy requires a number of critical activities, such as business case development. A bottoms-up benefit case must be built and analyzed and a business case should be built for benefits tracking. Usually, building a business case includes conducting focus interviews , analyzing company financial reports, building strategy behind the business case financial analysis, and creating a top-down business case ppt. The quantitative analysis involved includes financial analysis reporting, ratios analysis, DuPont Analysis, key stakeholder value analysis, and rudimentary driver sensitivity analyses.
The strategic thinking of modern business organizations has been built upon a platform of military strategists since 400BC when Sun Tzu wrote the Art of War. Sun Tzus thoughts about the factor of terrain, if we were to take that into the context of companies competing today, translates to markets, industry structures, market positions, and industry forces. Sun Tzu spoke about indirect strategies when he said winning without fighting is the acme of skill on the battlefield. Sun Tzu wrote the Art of War, which has been adopted into a business strategy book. In Sun Tzus Art of War, he wrote about five fundamental factors in military strategy and each of these factors relates to a popular concept of business development.
Today, there are Henry Mintzberg and Joseph Bower lead the popular beliefs around strategic management. Mintzberg also advocates a transformation of business processes, where management recognizes the need and has the ability to conduct complete business operational optimization. Mintzberg proposes for an organization, bottom-ups approach to drive strategy development that adheres to organizational configuration. In organizational configuration, the organization engages in behaviors based on adoption to business surroundings.
Strategy Development
shutter dont be afraid of the dark dont be afraid of the dark kelly rowland karen gillan karen gillan thor
No comments:
Post a Comment