What is good business strategy?

A company must have a good business strategy at works, to achieve its mission and goals. Four important aspects define a good business strategy. Here is a pre-view:

1. Image: First and foremost is the image of the firm in the minds of customers, market participants who may be competitors or alliance partners. Image includes, name, reputation, brand, goodwill and many others that accentuate corporate image to be imprinted in the minds of all participants. Being dedicated and passionate about what a firm does goes a long way in building acceptance. There must be core values that differentiate the firm from others in the pack. Core competencies of the firm give the impression that a firm has a doable proposition.

2. End-state: This is the all-inclusive purpose for which the firm is originally established. In simpler terms it is the destination a firm is seeking to reach and business strategy is crafted to enable to get there using the means and resources available to the firm. There are two limbs: actionable goals and doable work-in-process. When firm defines its mission and goals clearly and communicates these to its staff in simple language it motivates the staff to put the shoulders at the wheel to achieve the end-state. This is a classic instance where you get efficiency and effectiveness is on even keel.

3. Target market:  There is logical sequence in this paradigm where image leads to end-state and thence to the market place where the delivery of value takes place. In crafting good business strategy, identifying the target market, customer needs, segmentation and the modes of channels and distribution are considered in exhaustive detail. Moreover, business strategy must be properly aligned with image, end-state and target market to produce what we call an “absolute offer to the market”.

4. Value proposition: This in simple terms conveys what a firm offers to the market. In order to create value proposition firm must co-ordinate its means and resources. To produce the ideal product that goes to the market to satisfy the needs of the customers in better ways than what is being done at present by other participants. Business strategy functions in perfect way to translate means and resources to saleable product. This is in sum, creating the value. An excellent value proposition has high probability of success in the market place and business strategy aims at that.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist