In every business, there has to be a certain strategy that is create so that the firm will become successful in its goals and objectives. Now take note that there are steps that a strategic manager should take in order to create the perfect business strategy. For those who are not familiar with the process, here is how to create one.
Now the very first thing that the strategic manager has to do would be to study the history and products or services of a firm to get a grasp of what it is like. After that, he should also study the mission, vision and values of the company so he knows the direction of this firm and where they are now. From there, he may proceed to create goals and objectives for it.
Now when creating goals and objectives, one has to further break them down into three specific types of goals and objectives. These are mainly the financial ones, the social ones, and the corporate ones. Now the difference between goals and objectives is that goals are general plans while the objectives will state how exactly to reach those plans.
After that is done, then one has to know get a good grasp of how well the firm is actually doing. He will do this by examining the financial statements of the firm. The things that he will use for his analysis would be the income statement, the statement of financial position, and of the course the equity of the owner.
After checking the financial ratios, the next thing to do would be to first identify the macro environment of the industry itself. This can be done by doing a PESTLE analysis which analyzes the political, economic, social, legal, and environmental factors. He may also do an analysis on the competitive environment of the industry by using the five competitive forces model.
Of course he also has to look at what the companies have namely the assets. Now do take note that he has to look at both tangible and intangible assets of the company. From there, he has to make a SWOT analysis to tell him how he is to make the company thrive.
The next step would be to now create the strategy for the company. In order to create one, one may choose from the five generic strategies which are broad differentiation, focused differentiation, low cost, focused low cost, or best cost. From there, he has to now take a look at the elements of this strategy so that he will know how to implement it successfully.
Now the very last step from here would be to know ask whether the company would be able to afford implementing it. Also, one has to analyze who the target market is and how to be able to cater to them. After all these steps are done, then one may now present this strategy to the CEO to see if the CEO will approve of this project.
Now the very first thing that the strategic manager has to do would be to study the history and products or services of a firm to get a grasp of what it is like. After that, he should also study the mission, vision and values of the company so he knows the direction of this firm and where they are now. From there, he may proceed to create goals and objectives for it.
Now when creating goals and objectives, one has to further break them down into three specific types of goals and objectives. These are mainly the financial ones, the social ones, and the corporate ones. Now the difference between goals and objectives is that goals are general plans while the objectives will state how exactly to reach those plans.
After that is done, then one has to know get a good grasp of how well the firm is actually doing. He will do this by examining the financial statements of the firm. The things that he will use for his analysis would be the income statement, the statement of financial position, and of the course the equity of the owner.
After checking the financial ratios, the next thing to do would be to first identify the macro environment of the industry itself. This can be done by doing a PESTLE analysis which analyzes the political, economic, social, legal, and environmental factors. He may also do an analysis on the competitive environment of the industry by using the five competitive forces model.
Of course he also has to look at what the companies have namely the assets. Now do take note that he has to look at both tangible and intangible assets of the company. From there, he has to make a SWOT analysis to tell him how he is to make the company thrive.
The next step would be to now create the strategy for the company. In order to create one, one may choose from the five generic strategies which are broad differentiation, focused differentiation, low cost, focused low cost, or best cost. From there, he has to now take a look at the elements of this strategy so that he will know how to implement it successfully.
Now the very last step from here would be to know ask whether the company would be able to afford implementing it. Also, one has to analyze who the target market is and how to be able to cater to them. After all these steps are done, then one may now present this strategy to the CEO to see if the CEO will approve of this project.
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