What is success and why is strategy required for success?
Success is the accomplishment of an aim or purpose while strategy is a plan of action designed to achieve a long-term or overall aim. Organizations will always have targets and aim for specific goals. A systematic, formally documented plan to attain these goals is vital to achieving it.
What are these strategies?
There are different forms of strategy but an Organization should at least consider three basic types, namely:
- Corporate strategy
- Business strategy
- Operational strategy
Is a corporation’s overall scope and direction. The way in which its various business operations work together to achieve particular goals. The goal is to optimize an organization’s operations, profitability and growth.
Business strategy is basically how an organization will approach the market place. It focuses on where and how to compete in order to have a competitive advantage. However, this should align with the corporate strategy. This can also be termed as competitive strategy.
An operational strategy supports the corporate strategy. It’s a plan of action on how an organization will deploy resources in the production of a products or services and effectively deliver in terms of people and processes.
Can you highlight some of the benefits of these strategies?
Clarity and direction
Specific written goals are much easier to achieve than vague ones and this automatically makes it clear. Strategy highlights the plan, the plot and gives direction. Direction determines destination, not the intention. Without direction, exertions might be futile.
Improvement of corporate performance
An excellently executed strategy has a direct impact on corporate performance. An organization’s execution on its most important parameters, typically financial, market and shareholder performance improves drastically.
A more proactive business
A good strategy makes an organization more proactive rather than reactive. With a plan, you can realize the need for change well before the change occurs and be strategically positioned.
Identification of new opportunities
A strategy may also identify opportunities and trends in the future since it requires an organized effort to gather information about target markets or customers.
- Improved communication between employees, investors and the board.
- Identification of industry changes and key external trends.
- Indication of the organization’s business model.
- More commitment in the management team.
- Improved resource management.