Executing business strategy is not a straight forward
task. There could be surprises thrown in the path of implementation process. Moreover
in evolving field of business competition changes take place at the most unexpected
moment that too with massive upheaval. Here are four such pitfalls a business
must be ready to avoid:
1. Losing your cool in the moment of crisis is the
first and foremost drawback. Many firms are good at chalking out excellent
business plans that are notoriously absent of having the B Plan. This happens where the chosen
business strategy has never been revisited at the stage of implementation.
General De Gaulle commands “have a good strategy but re-visit it often”.
This demands that strategist validates all the underlying assumptions while
drafting his strategy and during its execution.
2. In military warfare as well as business warfare a strategist must anticipate how the opponent would react to a particular move the firm is making. The response to such a move vary in the spectrum of deflecting attack to countering attack. Assuming an opponent would blink and meekly surrender is never a reality in business lore may be in fictions. Hence it is vital for business strategist to think through each and every component of his strategy thoroughly before he gives the go ahead for execution.
3. Nothing is conventional these days.
Behaviourists come out with all expected scenarios that are perhaps laboratory
tested or derived from class room discussion. But the sad truth is no one can
predict either human or industrial behaviour occurring within a definitive
range. Responses and outcome
in business competition could range between conventional to unconventional.
A good example is a firm trying price skimming tactics at the time of falling demand
for its key product. His opponent go contrarian and hike up the price to
indicate to the consumers that his product retains high quality standards.
4. Failing to look at the choices consumers would make over a period of
time is the fourth and most damaging flaw that could bring about total collapse
of the demand for products a firm manufacture and sell. Fashions change,
demands change, and usability changes in fact the entire spectrum changes. The bottom
line is we are living in ever changing world where fads and fashions come and
go. Unless the product satisfies a known, useful and permanent factor such as
electricity generation firms must have their eyes focused on the evolution of
the product per se and tweak it in addition to tweak the overall business strategy
of creating, delivering and realizing value!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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