Steps Involved In Creating Effective Business Strategy

By Rodney Mejia


Business strategy may be described as the means and ways developed by a company in order to enable them maximizes their profits and to realize growth. It should act as a plan which directs the operation of the business in the long run. The strategies are reviewed after sometimes especially after realizing the objectives why they were created.

Before setting up to creating a business strategy, it is important that the management must understand the following two things. The first one is to understand the challenges it is facing which prevents it from being profitable. The other one is the knowing and anticipating where you want the business to be in future.

The first step therefore is to identify and understand the real problem the company is facing. For instance, if the company is recording weak sale, it is important to identify the weak sale as the problem and then find reasons why the company is recording those weak sales. The poor sales may just act as a symptom to indicate the existence of some more fundamental problems facing the company.

You should answer until a point where there is no answer to give to the question, then you will know that you have successfully reached to the fundamental problem which deserves to be addressed in the strategy. Establishment of the solution is another part which is included in the blue print. It is important to develop a solution which is realistic and practical.

But at the face of it may be recording poor sales as a result of poor marketing strategies. You should therefore first ensure that there is accurate identification and understanding of the challenge as the first step towards creating an effective business strategy. The second guideline entails the formulation of action oriented solution to address the identified problem.

After establishing the general action, specific actions are then established like in regard to marketing so and even redesigning the goods to make them attractive. What is important to note is that all other specific strategies must be able to move the company forward in order for it to realize its objectives.

In order to demonstrate the formulation of general solution and specific solutions, we will consider the fundamental problem of lack of distinction from other products as well as lack of value for their products. The major solution should seek to adding value to the products and creating the distinction while the specific solutions should include the rebranding of the products to give them a different look, conducting a research to find out what the market wants, as well as adding some value to the products.

The specific strategies are closely related and their overriding objective is to rectify the problem which affects the company. The objective of the strategy in this instance will seek to elevate the value of the goods and services in the eyes of the customers by knowing what they want and communicating the value of the products to the market in an effective way. This is the business strategy that works.




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