The development of business strategy refers to the process of creating and implementing plans and tactics to achieve a company's long-term goals and objectives. This process involves a thorough analysis of the business environment, identification of opportunities and threats, assessment of the company's strengths and weaknesses, and the formulation of a plan that leverages the company's resources and capabilities to achieve a competitive advantage.
The following are the key steps in the development of a business strategy:
-
Environmental analysis: The first step is to assess the external and internal factors that will impact the company's success. This includes an analysis of the economic, political, social, technological, legal, and competitive factors that may affect the company's ability to compete.
-
SWOT analysis: The second step is to conduct a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to identify the company's key strengths and weaknesses, and to identify potential opportunities and threats.
-
Strategic formulation: Based on the results of the environmental and SWOT analyses, the company then formulates a strategic plan that outlines its goals, objectives, and strategies.
-
Implementation: Once the strategic plan has been formulated, the company then develops tactics and action plans to put the strategy into action. This may include changes to organizational structure, processes, systems, and culture.
-
Monitoring and evaluation: Finally, the company monitors and evaluates the success of its strategy and makes changes as necessary to ensure that it remains on track to meet its goals and objectives.
The development of a business strategy is an ongoing process that requires continuous adaptation to changing market conditions and to the evolution of the company's goals and objectives.