Key to Success – The Importance of Developing a Business Strategy

Sometimes we do not know what to do to be able to run the business well. Various problems come up that make us lose direction will the business targets we have set. But that does not mean there is nothing we can do to promote and develop the business.

bussiness strategy

Many things that we can find and do in order to realize the success that we have long dreamed of. But one thing is for sure, all these things require a careful planning.

In business, a strategy is very important. Because the business strategy is the key to success that will help us in many ways.

Business Strategy Formulation

In building a business strategy, we should be able to draw up a step – a step that aims to build the vision and mission of the business or enterprise, setting goals and financial strategies owned.

That way we can create or design an effective business strategy for our business. Here are a few things to consider in formulating a business strategy that is.

  1. Identify neighborhoods that will be entered by the company in the future and determine the company’s mission to achieve the vision that has been set.
  2. Conduct analysis of enterprise environment both internally and externally to determine the strengths, weaknesses, opportunities and threats that may be faced by the company.
  3. Formulate factors – the key success factors (Key Success Factor) of a strategy – a strategy that has been designed based on the analysis that has been done.
  4. Determine the purpose and size of the target. Evaluate various alternative strategies that can be used by considering the available resources.

Select and determine the most appropriate strategy to achieve the company’s objectives in the short term and long term.

Strategy Level

With reference to the views of Dan Schendel and Charles Hofer, we can see that in the business world there are four kinds of levels where the overall strategy of the so-called strategy known as Master Strategy.

  1. Enterprise Strategy
    This business strategy related to public response. Each organization must have had a relationship with the community. So in the level of this strategy is very important for us to establish a relation or relation to society by providing an excellent level of service to the desires and needs of the community.
  2. Corporate Strategy
    This strategy relates to the mission of the organization so it is often referred to as the Grand Strategy. In general, the level of this strategy is to determine what kind of mission to be achieved by an organization. For an organization, it is important for the organization to know the purpose of the mission which is owned because then they will know how the mission can be achieved.
  3. Business Strategy
    At the level of the business strategy, we will start thinking about how we can grab the attention of the market in the community in order to earn a profit – profit that is able to support the strategic development of the organization to a better level.
  4. Functional Strategy
    This one is a business strategy supporting strategies that aim to support the success of other business strategies. Functional Strategy has three different types, namely

    • Functional Strategy Economics
      This strategy includes functions that allow an organization as a whole can live a healthy economy. This function itself, among others, finance, marketing, resources, and so forth.
    • Functional Strategy Management
      Includes management functions such as planning, organizing, implementating, controlling, staffing, leading and so forth.
    • Strategy Issues
      The main function of this strategy is to control the environment, both in the environmental situation is known or unknown.

Now we have to know more about what the business strategy and how to formulate business strategy is good and right so that it can assist in speeding up the process of business growth.