Business Strategy

Business Strategy

A Business strategy, what is it?

In 1983, Toyota chairman Eiji Toyoda determined that the time was right for Toyota to produce a luxury automobile. He decided that this new vehicle would be the finest luxury car in the world - offering speed, safety, comfort, elegance, dignity, and beauty. Lexus (History, FAQ)

The above example reflects a decision and actions towards reaching a goal to be competitive in the industry and develop a product with specific combined features. A strategy defines what a business needs to reach its goals that guides & helps in decision making, and resource allocation including skill & competence. It helps coherence, rationale, and sense of achievement among all the levels & divisions of the organization.

Why business strategy? is it any important?

In essence, helps a business in many ways like

  • Identification of key stages to accomplish business goals - Plan
  • SWOT – a tool that gives a 360o Understanding of the Business Context
  • Effective allocation of resources for business activities
  • Control over the performance of organizational goals management & achievement
  • Competitive advantage by capitalizing strengths

Business Strategy Essentials

1.       Vision with a business purpose

Vision as a direction for the business, the business strategy helps you reach your business objectives. The business strategy guides what needs to be done and who is responsible for it.

2.       Principal values

Principal Values provide a common thread towards success and achievement of business strategy and purpose of the organization.

3.       Analysis - SWOT

SWOT allows the organization to exploit its strengths to advantage competitiveness. Capitalize opportunities & shift weaknesses and threats towards a positive growth trend.

4.       Initiatives

Strong Initiatives with well planned & risk-managed approach produce results with reduced effort & saved time. The growth curve always starts from zero, with the right initiative in the right direction.

5.       Resource Management

Appropriate Resource allocation with precise well-defined competencies & Skillset required to achieve the organizational goals and support operational excellence.

6.       Statistics – Quantification

Setting targets, performance evaluation, Review & assessment, and Refinement of business & operational Goals with consistency & on continual intervals strengthens the strategy implementation

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