Business Strategy

We all have different ideas as to what strategy is. Some may think it is a tactic or other may think it is a plan. Well both of them are not far off, since an accepted definition for Strategy says ‘a course of action/plan that is developed or designed to achieve a set of objectives’. In simple words it is a set of rules and guidelines that will help us achieve some target we have set.

A Business strategy is pretty much the same, whatever the actions taken by a business to achieve its set objectives. A strong strategy is important for any business to distinguish themselves from the competition and face it. Also it is important to be aware of the competition’s strategy when preparing our strategy.

Business Strategy is mainly evaluated through the Rational Planning Model which is demonstrated as below.

Every bit of planning and organizing and strategizing in an organization should start with its mission and objective statements, because every action taken by the organization should eventually lead to achieving business’s mission and objectives. A corporate appraisal is carried out to understand the current position of the business both internally and externally. A preferred analysis method would be SWOT analysis. Then it is essential to generate strategic options which are in line with our business position and mission and objectives. In the next step those strategic options should be evaluated and the best option should be selected. Such strategy should then be implemented and reviewed and controlled as and when required.

A more detailed look into the each of the steps of the Rational Planning Model will be conducted in the articles to come. Keep in touch and comment for any questions and ideas.