In every business, there has to be a certain strategy that is create so that the firm will become successful in its goals and objectives. Now take note that there are steps that a strategic manager should take in order to create the perfect business strategy. For those who are not familiar with the process, here is how to create one.
Now the very first thing that the strategic manager has to do would be to study the history and products or services of a firm to get a grasp of what it is like. After that, he should also study the mission, vision and values of the company so he knows the direction of this firm and where they are now. From there, he may proceed to create goals and objectives for it.
Now when making the goals, he has to make sure that he would make three specific goals namely the strategic, the social, and the financial. The strategic goals would talk about the current strategies, the social goals would talk about the corporate social responsibilities, and the financial goals would talk about the financial status of the firm. Now he has to make the same thing for the objectives with the only difference is that the objectives are more specific and have time bounds.
After creating some goals and objectives for the company, the next thing to do would be to look at their financial statements. This is extremely important simply because it will tell the strategist how the company is currently doing and how well it performed in the past. From there, he will be making an analysis based on the data that he acquired.
When he has identified how well the firm is doing, then the very next step would be to examine the outside environment or the industry. He will do this by making a PESTEL analysis that would take a look at how politics, economic situations, social aspects, legal aspects, and environmental aspects affect the company. After that, he also has to examine the competitive environment of the industry.
When that is done, one has to now look at the resources of the company. They have to look at both the tangible and intangible assets that the company has. From there, he has to make a SWOT analysis which will determine the strengths and weaknesses of the firm and the opportunities and threats that the firm will have in the industry.
The next step would be to now create the strategy for the company. In order to create one, one may choose from the five generic strategies which are broad differentiation, focused differentiation, low cost, focused low cost, or best cost. From there, he has to now take a look at the elements of this strategy so that he will know how to implement it successfully.
Now the very last step from here would be to know ask whether the company would be able to afford implementing it. Also, one has to analyze who the target market is and how to be able to cater to them. After all these steps are done, then one may now present this strategy to the CEO to see if the CEO will approve of this project.
Now the very first thing that the strategic manager has to do would be to study the history and products or services of a firm to get a grasp of what it is like. After that, he should also study the mission, vision and values of the company so he knows the direction of this firm and where they are now. From there, he may proceed to create goals and objectives for it.
Now when making the goals, he has to make sure that he would make three specific goals namely the strategic, the social, and the financial. The strategic goals would talk about the current strategies, the social goals would talk about the corporate social responsibilities, and the financial goals would talk about the financial status of the firm. Now he has to make the same thing for the objectives with the only difference is that the objectives are more specific and have time bounds.
After creating some goals and objectives for the company, the next thing to do would be to look at their financial statements. This is extremely important simply because it will tell the strategist how the company is currently doing and how well it performed in the past. From there, he will be making an analysis based on the data that he acquired.
When he has identified how well the firm is doing, then the very next step would be to examine the outside environment or the industry. He will do this by making a PESTEL analysis that would take a look at how politics, economic situations, social aspects, legal aspects, and environmental aspects affect the company. After that, he also has to examine the competitive environment of the industry.
When that is done, one has to now look at the resources of the company. They have to look at both the tangible and intangible assets that the company has. From there, he has to make a SWOT analysis which will determine the strengths and weaknesses of the firm and the opportunities and threats that the firm will have in the industry.
The next step would be to now create the strategy for the company. In order to create one, one may choose from the five generic strategies which are broad differentiation, focused differentiation, low cost, focused low cost, or best cost. From there, he has to now take a look at the elements of this strategy so that he will know how to implement it successfully.
Now the very last step from here would be to know ask whether the company would be able to afford implementing it. Also, one has to analyze who the target market is and how to be able to cater to them. After all these steps are done, then one may now present this strategy to the CEO to see if the CEO will approve of this project.
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