Great Management = Good Strategy + Effective Execution
A business strategy is a specific plan along with methods which takes a business from its current situation to future goals, while passing through the friction with challenges and limitations of situations.
In simple terms, Strategy involves the intellect and execution that takes one busines from its current situation to your desired future goals. The success and sustainability of any business venture depend on the effectiveness of its strategy framework, which also enables to achieve organizational goals.
The reason why it is so important to have a strategy is that it gives business the method and techniques to perform and achieve desired results. Moreover, constant evolution of strategy also facilitates businesses to build capacity for greater challenges and bigger opportunities.
5 important reasons to have a business strategy
1. Roadmap to Growth
A strategic framework directs your organization towards a single vision & mission, it also aids setting up the assessment parameters, to measure the performance of the organization. This also enables the business owners to make effective decisions based on the performances in order to acquire desired profits and achieve defined goals.
2. Stronger Bottom-line / Profitability
Within an effective strategy framework one can measure the overall performance of the origination, identify the areas of improvements and understand the gaps to Implement the necessary measures, which will improve the overall efficiency and profitability of the organization.
3. Guideline to Invest Expansion Capital
The vast changes in the marketplace, such as political changes, technological progress as well as demographic transition, can be leveraged through proper strategies. The right strategic framework provides guidance to adapt to these changes by modifying same products or adding new products to optimize new capital investment in alignment with long term vision.
4. Unify Company-wide Decision Making
To ensure cumulative growth, it is necessary for businesses to focus all their resources as well as energies towards the same goals. As such numerous such decisions are made daily across the company, a strategic framework becomes indispensable to ensure that such decisions are directed towards the same goal.
5. Competitive Advantage
A effective strategic framework will enable you to specifically identify your ideal target customer along with the most efficacious ways to meet their expectations, It allows you to gain competitive advantage in your product/service, not only in marketing-sales but also in offering values to facilitate customer satisfaction and retention.