Business
Strategy
Lesson 4
Business Strategy
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A business strategy is
the means by which it
sets out to achieve its
desired
ends
(objectives).
It
can
simply
be
described as a longterm business planning.
Typically a business
strategy will cover a
period of about 3-5
years (sometimes even
longer).
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Business Strategy is a long
term
plan
of
action
designed to achieve a
particular goal or set of
goals or objectives.
Strategy is management's
game
plan
for
strengthening
the
performance
of
the
enterprise.
It states how business
should be conduct to
achieve the desired goals.
Without
a
strategy
management
has
no
roadmap to guide them.
Performance Management
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Performance
management
helps
organizations
achieve
their strategic goals.
It is how your resources
and
people
are
managed to deliver
your objectives.
Performance
management is really
about
good
management, ensuring
that your organization
and team goals are
achieved.
It helps to:
 prioritize what gets done
and ensure there are
sufficient resources to do it
 ensure you provide value
for money
 motivate and manage staff
 identify and rectify poor
performance at an early
stage
 learn
from
past
performance and improve
future performance
 increase
customer
satisfaction.
Performance Management
 It
is sometimes
called Business
Performance
Management
(BPM) and it helps
improve:
 Control
 Coordination
 Communication
Performance
management model
which involves four steps:
1.
Set a Strategy
2.
Create a plan
3.
Monitor and Analyze
utilizing Business
Intelligence and
Business Dashboards
4.
Make Decisions and
Adjustments
Creating Business Strategy
An essential first step in business performance management.
1.
2.
3.
4.
5.
6.
7.
8.
Set a Vision Statement (future – where they want
to be),
Set a Mission Statement (purpose-what they do),
Doing a SWOT analysis - Strengths, Weaknesses,
Opportunities and Threats,
Creating a Balanced Scorecard,
Setting Goals/Objectives,
Creating a Strategy Map,
Setting Key Performance Indicators or KPIs ,and
Creating Dashboards to monitor KPIs
Vision Statement
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It describes a picture of the company's future and
the direction it is headed.
It encapsulates the customer focus and market
position it should have.
Writing a vision statement should answer the
following questions:
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What will the business look like in 3 to 5 years from
now
What things you are going to try and achieve
What customer needs you are going to address
Ideally it should be audacious and challenging
and represent your dream.
It should inspire and excite.
Vision Statement
“Where do we want to go?”
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Vision statements capture your dreams and
hopes for your business.
It reminds you of what you are trying to build.
It should act as an inspiration to all associated
with the company - employees, customers
and shareholders.
It may apply to an entire company or to a
single division of that company.
The vision statement is usually short - a few
sentences at most and should be memorable.
Vision Statement Examples:
"We bring the good things to Life" - General Electric(GE)
"To enable people and businesses throughout the world
realize their potential" - Microsoft
"Our ability to grow, innovate and deliver superb service,
combined with our tested, highly successful business model,
positions us to perform well in a wide range of economic
scenarios. We're looking forward to our future — the best is yet
to come."
- Marriott Hotels
"To be the most creative organization in the world.“ - BBC
vision
Mission Statement
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It is simply a statement of
company's,
team's
or
organization's purpose.
It describes what business
the company is in and the
customer needs it is trying
to meet.
The
goal
of
mission
statement is to keep you
headed
in
the
right
direction when trying to
plan ahead. It could be
said it is the company's
compass.
Here are the key questions to
ask to create a mission
statement:
 Who are our customers?
 What market do we serve?
 What customers needs are
you trying to satisfy?
 What specialist knowledge
does the company hold?
 What specialist knowledge
or competencies does the
company hold?
Write a mission statement that
is clear, short and memorable
Examples
Detailed
Mission
Statement examples:
 The
World's Largest
Company by revenue Walmart's
Mission
Statement
 Engendering the 'Third
Place’ - Starbucks
 Evolved from Crisis to
'Best in The World‘ Best Buy Mission
To enrich people's lives with
programmes and services that inform,
educate and entertain.
Six purposes
1.
Sustaining citizenship and civil
society
2.
Promoting education and
learning
3.
Stimulating creativity and cultural
excellence
4.
Representing the UK, its nations,
regions and communities
5.
Bringing the UK to the world and
the world to the UK
6.
Delivering to the public the
benefit of emerging
communications technologies
and services
INDIVIDUAL ACTIVITY
 Name
your company, define.
 Compose your Vision and Mission.
SWOT
S
stands for Strengths
 W stands for Weaknesses
 O stands for Opportunities
 T stands for Threats
SWOT analysis is an important tool for rapidly
establishing the overall strategic position of
a business and its environment.
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It is an important step in helping determine your
business strategy and so lead you to your business
intelligence strategy.
Once key issues have been identified, they feed into
business objectives, particularly marketing objectives
and goals. Sometimes you can apply it to projects
and other ventures.
It is a very popular tool with business and marketing
professionals because it is quick and easy to learn.
It is subjective though and is best done by involving a
good cross section of staff and external people, so
that you get as complete and objective set of
SWOTs.
When to use SWOT
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The use of a SWOT analysis is to organize information, provide insight
into barriers that may be present while engaging in social change
processes, and identify strengths available that can be activated
to counteract these barriers.
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A SWOT analysis can be used to:
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Explore new solutions to problems
Identify barriers that will limit goals/objectives
Decide on direction that will be most effective
Reveal possibilities and limitations for change
To revise plans to best navigate systems, communities, and
organizations
As a brainstorming and recording device as a means of
communication
To enhance “credibility of interpretation” to be utilized in
presentation to leaders or key supporters.
Strengths and weaknesses are
Internal factors.
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People - Skills, Attitude, Training, Knowledge
Products - Quality, Price, Life Cycle
Operations/Production - Capacity, Flexibility
Organization - Structure, Relationships
Systems - Computer, Databases, Monitoring
Dashboards
Finance - Balance sheet, Cash Flow
Reputation - Customer opinion
Opportunities and Threats are
External factors.
 Economy
- Strength of Currency
 Market - Growth/Decline, Fashion Trend
 Legislation - Pollution, Product Liability,
Energy, Healthcare
 Technology - Substitutes, New Tools,
Artificial Intelligence
 Society - Ageing Population
 Environment - Recycling, Increased
Testing, Protection
Benefits of SWOT
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The SWOT analysis in Social Work practice framework
is beneficial because it helps organizations decide
whether or not an objective is obtainable and
therefore enables organizations to set achievable
goals, objectives, and steps to further the social
change or community development effort.
It enables organizers to take visions and produce
practical and efficient outcomes in order to effect
long-lasting change, and it helps organizations
gather meaningful information in order to maximize
their potential.
Completing a SWOT analysis is a useful process
regarding the consideration of key organizational
priorities, such as gender and cultural diversity, and
fundraising objectives.
Google Website
 Use
Google website to present your
Vision, Mission and SWOT.