Tuesday, May 31, 2016
The Strategy Creation Process
The strategy creation process takes time and a well thought out approach to the market. Internal resources must be understood and considerable market analysis created before it is possible to truly match the two. As one moves down the process of strategy creation they will inevitably come across new challenges. Step 1: The need for change occurs due to market adjustments that leave the company less competitive than before. This pressure forces the company to rethink its strategy. Step 2: Defining the problem and its impact on the business can be difficult. Companies have often made the problem of misinterpreting the underlining cause of change and therefore won't be able to master a solution. Step 3: Determine the possible short and long-term solutions to those problems. This may take time, research and analysis to even have a solution. - Review the success and failures of other companies. - Understand the market and its demands. - Review the regulatory environment - Spend time understanding customers and what they need from the company. Step 4: Consider the overall needs of the customer and how they fit within the strategy. There must be some value proposition the company can offer that will appeal to customers and their need to purchase. Step 5: Scan Internal resources and see what the company currently has in place and can put in place to meet market challenges. Step 6: Review all possible strategies and ensure that investments in this strategy will create the most flexibility and options in the future. Step 7: Adjust all activities to meeting the new strategies and ensure that performance is rewarded for successful completion. Step 8: Continually review the strategy and match it against the needs of the market.