A business strategy is a blueprint that defines how your company intends to achieve its goals. It includes a series of high-level objectives that are designed to create long-term value for your investors, customers and shareholders. The business plan should also outline how your company will attain those goals by defining the specific steps you need to take. A well-defined strategy will help your organization remain focused on its mission and values as it grows, while providing a clear picture of what it requires to meet future challenges.
A strategy should identify the specific market your company intends to target. This is important for ensuring that your marketing efforts are targeting the most profitable customer groups, and that your products are tailored to fit the needs of those markets. A strategy should also specify the types of marketing channels and activities your company will employ to promote its products and services in that market.
When creating a business plan, your company should also include a SWOT analysis of its current strengths and weaknesses, opportunities and threats. This is a useful tool for helping your management team define realistic and achievable goals. This step also helps your company prepare for any unexpected obstacles that might arise, and exposes the areas of your business that need improvement.
The business plan should also provide a description of your company’s existing resources, such as financial and physical assets. You should also outline how your company will acquire and allocate additional resources as needed. This will help your management team understand what tools are available to meet your company’s goals, and it will make it easier to monitor progress toward those goals.
Creating a business plan that contains a detailed timeline is a key component to achieving success. A timeline will allow you to see how quickly your business can accomplish certain tasks, and it will help you set realistic expectations for the growth of your company. Having a timeline will also allow you to measure the effectiveness of your company’s marketing efforts.
Business strategies are typically formulated at three levels: the corporate, business and functional level. A corporate-level strategy is a comprehensive plan that affects all aspects of the company and is typically formulated by the board of directors or c-suite executives. A business-level strategy provides more detail on how the company plans to reach its goals, and a functional-level strategy identifies the specific steps supervisors and line managers need to take to support the corporate-level business strategy. For example, a functional-level strategy might instruct your managers to negotiate with suppliers in order to reduce the cost of the electronic components used in your company’s smartphones. This is a tactic that would support your company’s overall goal of becoming the lowest-priced smartphone provider in the market. In this way, your company will be able to attract and retain customers while increasing its profit margins.