In business you constantly take decisions on projects, developments, investments, hiring and timelines to name a few. In addition, your business does not operate on its own in a vacuum but in a market in which you have competition. So, in business you need to have a plan on how you are going to win over your competition and break into the market. Having a business strategy means working according to a framework that creates a space for decision making. It also means having a plan that enables you to surpass your competition.
A business strategy is a thought process that amongst others:
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Examines and learns from the past;
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Evaluates the current situation of a business; and
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Anticipates future business opportunities and market/business risks.
The processes enable the business to understand its organisational needs. Therefore, all businesses, from one-person start-ups to established global multinationals, should have their future existence based on a strategy.
In practice, a strategy will allow a thought process capable of looking ahead and
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Planning what type of products and/or services should be maintained/developed and delivered to customers;
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Helping to identify the type of customers you want to reach;
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Identifying which markets you want to operate in; and
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Perhaps which other markets you would want to prepare to penetrate in the future.
A business strategy is therefore not about what is right or wrong, but it is about being in a position where informed decisions can be taken. The end objective of this is to enable your business to make profits and to win over competition.
