In the competitive world of business, companies of all sizes are under pressure for successful outcomes. Market uncertainties can shake the most airtight plans. A comprehensive and transparent corporate strategy that properly accounts for risk can mitigate problems, keep management focused on essential goals and drive business development forward. This zeitgeist represents the pulse of business life today.
Success-oriented strategy implementation requires clarity and compatibility
Short-term goals are obsolete. Headwinds that could obstruct any goals include, but are not limited to, competitive battlegrounds and the challenges of digital marketing, which demand focused management, deep customer loyalty, strong brand identity and long-term objectives. Therefore, the direction of a business trajectory requires clear definition! Medium- to long-term goals must be cleanly planned and include “unique selling propositions” (USPs), which are essential for survival.
A corporate strategy that builds a secure business foundation enables profitability. Such a plan sets the course for the medium to long term with a view to 3-5 years, depending on the business sector. Where long-term development must be considered, even up to 10 years, risks associated with time are greater. In these cases, a strategy provides a helpful road map that can be amended accordingly.
Regardless of the time horizon, a corporate strategy must have concrete, detailed and measurable actions that connect budgets, forecasts, brand management and marketing and sales and after-sales support, to name a few key elements. The subdivision of activities among these areas must all feed the central goals of the strategy. These actions go beyond the mission statement or brand of a company because they are dynamic.
The corporate strategy includes the following points:
- Concretization of a business idea (derived and based on analyses, visions such as strategic success positions – including mission statement of the company);
- A definition, concise and precise, of the strategic direction of the entire company’s activities.
- Market-partner definition consistently defined and clearly elaborated (submarkets, product groups, segments, strategic business areas, objectives, principles of decision-making for marketing [marketing], infrastructure, finance [costs and revenue planning] and their temporal implementation phases [milestones]).
The ideal strategy should be concise and include:
- Detailed implementation planning that leads to management and active stakeholders to “live” the principles of success (concentration of forces, building up and expanding strengths, setting goals with the resources provided).
- Commitment to integrated partners (owners, employees, shareholders / investors, institutions such as banks, etc.).
- Clarity of vision for plans, which increases stakeholders’ identification with the company / its brand(s) and ensures a smooth implementation at the operational level.
The elements of inclusion, information-sharing and responsibility embodied in these points enables accountability from all who are involved in carrying out the strategy. This system of checks and balances helps to guide a company toward better investments based on metrics designed to keep the business on track for the term of the plan. Only perseverance in strategy pursuit brings success!
Planning for the corporate strategy
Any good corporate strategy is concise with concrete details that address:
- Vision of the enterprise / the project.
- Geographical markets, sub-markets with product groups / services and related partners as a priority.
- Clear priorities and initiation / formation of the strategic business areas (derived from a combination of submarkets, market partners, potential partners) based on detailed implementation.
- Sales and contribution margin-targets for the plan term regarding product groups and market partners.
- Company implementation plans about basic decisions in the fields of marketing, organization / cooperation, management, development / innovation, production, procurement, return / financing, controlling, quality assurance and distribution.
- Milestones and important specifications for the time schedule of the strategy implementation for the plan term.
All statements must be clear, specific, non-contradictory and in line with the company mission statement. Details and good planning within a strategy will secure success and avoid failure!