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.
