How Strategists Make A Business Strategy

Strategy making is a very essential part of any business simply because it is this that will help the firm achieve its objectives and become successful in the industry. Now making strategies is not a short time thing as it takes quite a long process before one would even come up with one. If one is interested in becoming a strategic manager one day, then these steps to creating a business strategy may help.

Now before even trying to craft out some strategies, one has to first study the current position of the company by taking a look at the history of the firm and by checking the products and services. After one already has some substantial knowledge about the firm, then the next thing to do is look at the mission and vision to see the direction. Once he is done looking at all these things, he must now craft goals and objectives for the company.

Now the goals are broken down into three parts namely the corporate, financial, and social goals. The objectives also have to broken down into financial, social, and strategic portions. Do take note that the objectives have to be specific, time bound, measurable by value and have to be directly connected to the goals that were made.

The very next thing to do now would be to check the financial statements of the company. Checking the financial statements is very important because it will tell the strategy maker the current standing of the firm and help him achieve the financial goals and objectives. He will do this by making an analysis of its income statement, balance sheet, and the equity statement.

Now once that is done, one should now try to analyze the external environment of the firm namely the industry and the market. He may do this by examining the political, environmental, legal, social, and economic aspects that would affect the industry with relation to the company. From there he may do an analysis on the competitive environment of the company.

Now after looking at how the outside moves, he has to now look at the inside by looking at the resources. This would include both the intangible and tangible resources of the firm. He also has to make a SWOT analysis.

Of course the meat of it all would be when the strategist would be making the strategies already. Now in general, he should choose a strategy that will enable the firm to make products that are of low cost, that are differentiated as compared to others, or even both. Once he has chosen which of those strategies he wants, then he may delve deeper by analyzing the elements of these strategies.

Once that is already done, then one has to now evaluate his strategy to see if it is feasible. The two ways to do that would be to ask whether it is affordable by the firm and to ask whether it goes after the target market. Once the strategist has already answered all of those questions, it is up to the CEO to approve or disapprove.

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