What is a business strategy? Business strategy is a way or plan in the form of a concept that is deliberately made to achieve the company’s long-term goals. A strategy is a key to achieving a competitive advantage and the success of a business. Not infrequently companies ask for help from top consultants at a high cost to formulate a strategy. Having a business strategy for the business to be run is very important. However, business strategy is not the only determinant of organizational success in achieving the strategic objectives that have been implemented. The conceptual business strategy may be good, but if the implementation is bad, the result is a failure. Many companies slumped because of implementing inappropriate strategies. Therefore, it is important to consider the strategy selection carefully and thoroughly. Businessmen who invest time and effort in composing business plans intelligently are more prepared to face the risk of business competition. Although the business plan does not guarantee 100% of a person’s success, this method will create opportunities for success.
To be able to maintain the survival of the company and win the competition requires a competitive advantage (competitive advantage) of companies that compete in the business they do. Competitive advantage can be achieved if the company makes the first step by making a good business plan. Management experts suggest that planning is so important in determining the direction and purpose of future activities and what is being done. Planning is expected to anticipate future activities and reduce the risk that might occur.
According to Stephanie K. Marrus, the strategy is defined as a process of determining the plans of the top leaders who focus on the long-term goals of the organization, accompanied by a way to form or how to achieve these goals.
According to Hamel and Prahalad, the strategy is an incremental action (continuous) and continuous and is carried out based on the perspective of what is expected by customers in the future.
According to James Brian Quinn (1980) is “a pattern or plan that integrates the main goals, policies, sequences of actions into the whole that is related”.
According to William Hence (1985) defines strategy as “concentration of sources on opportunities for competitive advantage”.
Smart Tips for Developing a Business Strategy
A business plan is like a written development concept that contains details of the description of financial planning, management, development, achievement targets and marketing strategies. The business plan outlines the direction, goals, and strategies of the company for the short, medium and long-term.
Here are smart tips on developing a business strategy: Have a Clear Business Description Arrange the Vision, Mission and Strategic Plan for your company. What are the goals to be achieved and strategies for achieving them? Describe the company’s current and future position, target market, competitive advantage, the location of the business, core management, business form, management concepts that are implemented and so on.
Perform Analysis of Business Competitors Make a note on analyzing your business competitors, observe and write down the strengths and weaknesses of their business. Then analyze what things you can learn and apply for your business.
Proper Targeted Marketing strategy making a Marketing Plan that includes an explanation of the chosen market share, ways of marketing and promotion that are made in accordance with the target market, to budget plans for sales, prices, distribution, and other costs.
Have a Financial Report Create a financial report describing this year’s financial cash flow statement, earnings expectations, capital requirements, operational costs, additional costs, reserve funds.
Maintaining the Quality of Products / Services Analyze risks that you might face in the future and anticipate the actions taken to deal with customer and company satisfaction.
Optimizing Human Resources to Realize Business Strategies
Human resources (HR) are the most important tools in realizing business strategies. If the HR cannot do business strategies that have been conceptualized, of course, a company cannot reach its goals.
Coulthard, et al (1995) argued that business planning is a detailed study of organizational activities about what organizational focus is done now and what will be done in the future in the program to achieve maximum results. According to Linda Pinson (2003), that understanding from a business plan is a business blueprint and will be equipped with tools to analyze and implement changes so that your business is more profitable. Vincent Vincent Gaspersz (2002) suggests that the business plan defines and sets goals and programs for achieving goals, regularly reviewing and making corrections to business plans, defining a new business or developing existing business.
Goals and usage
The purpose of business planning is that the business activities that will be carried out or those that are running remain on the right track according to the plan, are guidelines to sharpen the expected plans and seek funding from third parties. The purpose of business planning is to define agreements between partners business, setting the value of a business for sales and legal purposes, assessing a new product line, promotion, or business expansion, helping to maintain focus on key objectives, as a tool for evaluating possible alternatives, and providing a reference to measurement actual results.