You may be thinking, “We don’t need a strategy, that is definitely for less successful or much larger companies. We have made a bigger profit each year throughout the past ten years without even thinking about strategy.” To think like that smacks complacency and may even threaten the very survival of the business.

     Technological progress, conflict in the Middle East, economic upheaval and currency exchange rate fluctuation are just some of the features which continue to create an uncertain business environment in the future.

   An effective strategy means that a direction for the business has been set after evaluating the options available, priorities have been established, and realistic goals defined. By now you may be ready to be convinced, if only you know how to start creating a strategy.

   The answer is to take stock of your existing business objectively and dispassionately.

THE STOCK OF YOUR EXISTING BUSINESS

Occasionally, a traveller asks, “How do I get to my particular destination? Only to receive the reply, well. I would not start from here by choice” it would be attractive in business life if one would start with the business in the condition one would like it to be in ideally.  

    An objective and quantitative pictures of the existing business needs to be assembled.   

The key aspects of the business to be examined includes:

(a)    Changes in the market place, distribution channels and nature of competition.

(b)   Trends in the share of the market obtained.

(c)    An analysis of customers and clients.

(d)   Quality, performance benefits, value for money, reliability and service provided compared with competitors.

(e)    Overall profitability achieved from each product or service group; and from each major customers.

(f)    Profitable gaps in the series or product offered.

(g)   Technological progress within the business.

(h)   Caliber, retention and reward of staff throughout the business.

(i)     The cost and role of the head office.

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