Strategy is a system of measures, plans and management decisions that lead the company to maximize results and long-term development, strengthen it in the market, attract customers and lead to the achievement of global goals.
How a strategy is made
The strategy determines the segment in which the organization will operate, the type of activity, models of management decisions. This is a comprehensive business management plan with all departments.
There are three types of strategy:
- corporate-wide one distributes resources between departments;
- functional strategy describes the goals of the departments at the moment, the expected results for the future;
- operational strategy formulates the actions for the departments to take;
The strategic department, if there is one in the organization, draws up a global plan. Management takes responsibility for formulation and implementation.
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The company's strategy answers three questions: what we do, what we don't do, what the synergy is. At the development stage, it is assessed whether the enterprise or company can implement this strategy: whether there is a sufficient amount of human resources, money and assets. Units receive plans and final goals. The ideal goal and direction of a company is the vision, the end result for which everything works. The strategy is drawn up for a minimum of five years and the main points are determined: • how the needs of the customer will change; • how the market in the segment where the company plans to operate will develop and change; • how the geography of the project will expand; • what will be the image of the firm among other representatives. |
How the strategy works
The directions in which the company can develop and which of them will be the main one are studied before drawing up a strategy. Further, market segments, business models and methods of competition are defined. The values of the organization are written into the mission:
- Who is the target audience;
- What problems of the client are being solved;
- What technologies, methods and tools are being used.
Business models are built in accordance with a strategy. The ratio of profits and costs will be indicators of success. The strategy determines the guideline of the activities of the company, prescribes coordination mechanisms for departments. Participants in the process must understand what the final goal needs to be achieved, and what needs to be done to achieve this.
