A business strategy is the most crucial dynamics in the success of a business. It is the visionary plan that creates a picture of how a business is going to operate and overcome competition. This is done by looking at the strengths to maximize on and identifying the weaknesses then finding solutions. Both new and existing business strategies need assessment.
In both formulation and evaluation, several factors should be considered. These include:
Internal Environment
Everything starts from within. Initially, business models focused solely on satisfying the customer. In the modern business world, however, there is an increased focus on satisfying the employee to make them more productive.
Such satisfaction encompasses several things. Human resource treatment is a major determinant of how employees feel. The equipment provided to them to accomplish their duties is also a significant factor.
Differentiation
This mainly refers to how a business does things differently from its competitors. It should be assessed regularly as what may start as different can soon become a common practice. For example, a business may need to upgrade to better computers if its initially superior models flood the market. Taking a step as simple as acquiring a refurbished MacBook pro can quickly set a business on the superiority path once again.
SWOT Analysis
This never goes out of fashion. A business should always look at the strengths and weaknesses it possesses, the opportunities that present themselves and the threats it faces. All these are highly dynamic attributes.
What may be a strength today may not still be so in a few months. New threats pop up daily in terms of legislation, competition, and consumer patterns etc. A business needs to consider these when evaluating its position in the business environment.
External Environment
Factors beyond a business’ control will always be there. Things like government policy and weather changes are not always predictable, yet they directly affect the performance of a business. Changes in such factors can quickly turn what was a sound business strategy into a recipe for failure.
A business needs to be constantly aware of these occurrences and adjust accordingly. Most importantly, it should not wait for changes to happen to react. Instead, a proactive approach of always keeping an ear on the ground to predict upcoming changes is what will separate a long-thriving business from a one-season wonder.
The above factors can be further expounded as a business assesses its strategy. Take the internal environment, for instance. It will involve numerous items like salaries, business location, staff numbers, welfare, equipment and many other aspects. Each factor should be assessed separately and in great detail, and also with brutal honesty for the business to move forward.
