Posts Tagged ‘Business Strategy’
The process of strategy formulation and implementation of five key interrelated stages, namely:
1. Forming a strategic vision about where the organization will move
2. Setting goals – change a strategic view into specific performance outcomes that must be achieved by the company.
3. Formulate strategic options for achieving the desired results.
4. Implement and execute the chosen strategy efficiently and effectively.
5. Evaluating the effectiveness of the strategy and its impact on business performance.
Developing Strategic Vision
Strategic business vision reflects the aspirations of management concerning the future direction of the organization, and also provides a detailed overview of “where we will go.” This vision describes the long-term corporate goals and establish the identity of the organization. Strategic Vision shows the direction of the organization in a particular direction and chart a strategic path that must be followed by the organization.
Strategic Goal Setting
The purpose of setting goals is to convert the managerial vision and mission statements into specific performance targets – results and outcomes to be achieved by the organization. Setting goals and then measuring whether they have achieved or have not been able to help managers to follow the progress of the organization.
Setting targets or performance goals required of all managers. Each unit within the company require a concrete targets and measurable performance and contribute to the achievement of corporate goals. Here a broad company objectives broken down into specific targets for each organizational unit and managers at lower levels held accountable for achieving them. Thus expected, results-oriented climate (result-oriented culture) will be formed across the company.
Formulating Business Strategy
The company’s strategy represents a management response to a number of business questions such as: a) whether to concentrate on one business or build a diverse business groups, b) if you want to reach a broader consumer or focus on narrow markets, c) whether to develop a product line or a more specific area, or d) whether the pursuit of competitive advantage based on low cost or product superiority or unique organizational capabilities.
The strategy leads to the important issue of how to achieve the target results in accordance with the organization’s situation and prospects. The aim is to “end result” and the strategy is the “tool” to achieve it.
Vision and strategy will not be there without being able to be completely and optimal execution. To help make the strategy can be implemented properly, it takes a number of reasons, among others: at all levels show strong leadership and action-oriented (action-oriented leadership), adaptive organizational capability, and also the linkage between strategy and policy of remuneration of employees. In addition, the successful implementation of the strategy will also be underpinned by the strong support of IT systems, and also by linkage with the budget allocation strategy.
Evaluation of Business Strategy
Applying process strategies must be evaluated regularly. In this evaluation phase can be seen that everything is going well, and what elements are still not perfect execution, and misses the target set. Against this element needs to be done immediately corrective action (corrective action and responses) to the direction and implementation strategies can be going according to plan.