Business strategies, sustainability, profitability, SWOT matrix, PESTEL analysis, Porter's forces, costs, Nike, Adidas, Kiabi, TOWS, competition, market penetration, diversification strategy, BCG matrix, Apple, competitive advantage, radical innovation, blue ocean strategy
Business strategy is to set long-term objectives and a direction to follow. It is aimed at creating value, sustainability and profitability. Business strategy results in inspiring actions to all departments, allocating resources to reach them and impacting the organization of the company. To do so requires a sound internal and external analysis and a steady decision-making sense from the senior management team.
An efficient strategy is well formulated and easy to communicate. It focuses on the whole of the organization towards a common goal. It brings sense to the everyday action of the staff and fosters a sense of community. In order to be successfully implemented, it has to be simple, strong and stable, as a pyramid.
[...] In each item, identify which factors have an impact on the business. Assess the impact of the factor with quantitative and qualitative methods (not on intuition and feeling). Rate the impact of the factors on the company's strategy from 1 (very low) to 5 (very high). These ratings can be affected as a weight as some items are more important than others. Update regularly the PESTEL analysis as external factors can sometimes evolve quickly. Political Political stability of the country, political regime Influence of the authorities State, region, customs union, taxes, subsidies) Influence of civil society actors non-governmental organizations, lobbies, media, pressures on consumers) for a solar panel manufacturer, public policy supporting clean energy through subsidies and tax credit may have a high positive impact. [...]
[...] What are the major drivers of costs? How do your key activities and key resources contribute to the cost structure? Are you properly utilizing economies of scale? Proportion of fixed and variable costs? [...]
[...] (Example of Danone: design and produce fresh dairy products.) Values Values are moral, social and economic principles. They are the basement of the company. Which principles do we share? (Example of Danone: health, sustainability, social inclusiveness.) Analyze the environment Analyze the macro-environment: the PESTEL analysis The PESTEL analysis is a mnemonic method whose aim to analyze the external environment of the company. Indeed, the macro-environment can affect the business and so it helps to forecast environment changes and to adapt. How to use PESTEL? [...]
[...] Channels: How do you deliver your value proposition? How do you reach your customer segments? Consider your supply, distribution, marketing and communication channels. Are they well integrated, and cost efficient? Are they utilized effectively? Customer relationship: What type of relationship do you have with your customers? How do you interact with customers and how does this differ amongst customer segments? Do you frequently communicate with your customers? How much support does your company provide? [...]
[...] Does it require a lot of capital or human resources? Key activities: What specific key activities are necessary to deliver your value proposition? What activities set your company apart from others? Do you need to procure specific niche resources? Key partners: Identify your company's key partners. This can consist of important suppliers in your supply chain. What key resources does the company receive from these partners? What key activities do they perform? Cost structure: Identify the key costs. [...]
APA Style referenceFor your bibliography
Online readingwith our online reader
Content validatedby our reading committee