This statement expresses the organization's values and aspirations; basically its reason or purpose for existence. Based on this mission statement the firm will formulate its business strategy. This business strategy is a long-term plan for accomplishing the mission set forth in the mission statement. Each function within the business can then derive its own strategy in support of the firm's overall business strategy financial strategy, marketing strategy, and operations strategy.
Business planning, through the creation and refinement of a formal business plan, is essential for two key reasons: In essence; Strategy is the long-term plan for a business or brand including a determination of key audiences and an understanding of what those audiences need to know about the overall business or brand and experience.
Essentially, everybody who you would wish to have an interest in the business! The Plan is very important to: Top notch prospective employees will be looking as closely at the business as you are at them. The business plan shows the essence of the business and the intended growth and payback mechanisms and timings.
Have key goals been met? Were realistic goals set?
Has growth and market penetration been well managed? What are the prospects for future growth and profitability?
Is the management team stable and competent to deliver such growth? But of equal importance in gaining acceptance for your plan is how it is presented.
What makes yours special? What makes you stand out? Your business plan must convey, through its general design and content, a creative feel for the business, its products and services, its target audiences and its approach to business in general. The long term Strategy of the business is of course key, as that defines both the vision and intent from the start.
It must look the part, be well reasoned and creatively presented, setting the tone for how you wish you and your business to be perceived. You want your business plan to have real impact. The more a business plan is creatively presented to mirror the aims and aspirations of the business, the more impact it will have.
Ensure therefore that your plan contains not just lots of words and numbers but also a visual representation of what your business is all about. When you do issue your business plan — be careful.
A plan will often consist of a variety of trade secrets and proprietary information — ensure it is correctly protected. Choose carefully who you want to read the plan and how much information they may need.
The point is to be able to give a sense of your strategic direction and the process you are following without giving up inadequately protected strategic, financial or tactical information that could harm the business were it to be used inappropriately by others.
Gauge what you will show anyone in any given circumstance. For example, you may not want to show someone with whom you are developing a strategic alliance what your sales plan or new product development might be, especially if they are normally considered competitors or could work with your competitors.
Or you may not want to divulge your core financials to a prospective recruit. Those interested in participating in your business will welcome your honesty and your appreciation of the risks as well as rewards inherent in your business planning.
We do not use business plan templates: We have written and developed the following:A version of this article appeared in the Autumn issue of strategy+business.
SWOT Analysis. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T).Such an analysis of the strategic environment is referred to as a SWOT analysis.
Strategy (from Greek στρατηγία stratēgia, "art of troop leader; office of general, command, generalship") is a high-level plan to achieve one or more goals under conditions of uncertainty. In the sense of the "art of the general", which included several subsets of skills including "tactics", siegecraft, logistics etc., the term came into use in the 6th century AD in East Roman.
The fundamental success of a strategy depends on three critical factors: a firm’s alignment with the external environment, a realistic internal view of its core competencies and sustainable competitive advantages, and careful implementation and monitoring.
This article discusses the role of finance in strategic planning, decision making, formulation. The other steps of the process include value assessment, vision and mission formulation, strategy design, performance audit analysis, action plan development, contingency planning and.
The ability to develop operational business strategies and then take those business strategies from plan to action (or to rethink them on short notice) sets true leaders apart from their peers.
Forward-looking strategy formulation can make the difference between a profitable business and one that stagnates.