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Steps To Crafting A Good Business Strategy June 18 Phil Foden Manchester City Jersey , 2014 | Author: Connie Turner | Posted in Business
Businesses would always rely on strategies in order to assure their survival and even success in the competitive environment of their respective industries. It is here that strategists would have to craft good strategies in order to get customers and fight against the rivals. If one is wondering how the strategists do it, here are the steps that they take to make a business strategy.

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 creating goals and objectives, one has to further break them down into three specific types of goals and objectives. These are mainly the financial ones, the social ones, and the corporate ones. Now the difference between goals and objectives is that goals are general plans while the objectives will state how exactly to reach those plans.

The very next thing to do now would be to check the financial statements of the company. Checking the financial statements is very important because it will tell the strategy maker the current standing of the firm and help him achieve the financial goals and objectives. He will do this by making an analysis of its income statement, balance sheet, and the equity statement.

Now once that is done, one should now try to analyze the external environment of the firm namely the industry and the market. He may do this by examining the political, environmental, legal, social Patrick Roberts Manchester City Jersey , and economic aspects that would affect the industry with relation to the company. From there he may do an analysis on the competitive environment of the company.

Now after looking at how the outside moves, he has to now look at the inside by looking at the resources. This would include both the intangible and tangible resources of the firm. He also has to make a SWOT analysis.

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.

Upon taking a look at the specifics of how to implement the chosen tactic, the next thing to do would be to ask two questions. These questions are is it affordable and would it be able to reach the target market or market segment that the firm desires. When all those steps are done, the plan is submitted to the CEO for approval.

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