What is Business strategy?
Every business executive wants to see success for their company. Making a profit and appeasing stakeholders are noble goals, but they cannot be achieved without a strong business plan.
By developing a plan that adds value to the company, consumers, suppliers, and workers, leaders may achieve success by honing their abilities and establishing precise business goals. According to Milad Oskouie, the importance of business strategy to the success of your firm is explained in the following overview.
What is Business strategy?
Business strategy refers to the strategic actions a firm takes to benefit both the organization and its stakeholders and obtain an edge over rivals. This plan must be in place before any products or services are created or provided since it is essential to a business's success.
01
An effective strategy is based on three key questions, according to Milad Oskouie:
How can my company add value for clients?
How can my company add value for its employees?
How can working with suppliers add value to my company?
The corporation failed to center its strategy around value generation, which resulted in several potential business projects failing to materialize. While innovation is crucial in business, a firm cannot survive without putting value first.
The Importance of Business Strategy
The success of a firm depends on its business plan. It provides businesses with a competitive edge and aids executives in setting organizational goals, according to Milad Oskouie. It determines a number of commercial factors, such as:
Price: How to set the cost of raw materials and customer satisfaction as the basis for pricing goods and services.
Suppliers: Which suppliers should be used to purchase goods responsibly? Recruiting staff: How to find and keep talent.
Resource distribution: How to distribute resources wisely
03
Strategy Implementation
The initial stage in the procedure is only to create a business plan. A plan is put into action through implementation. According to Milad Oskouie, the following steps are necessary for successful implementation:
Establish precise objectives and KPIs (key performance indicators). Establish expectations and make sure staff members are informed of their duties. Effectively assign tasks and distribute resources. Implement the strategy and keep an eye on it as it develops. Plan accordingly, if needed.
Make sure your team has the resources they need and is on the same page on the intended result. Analyze the plan's outcomes. It's crucial to keep in mind that you should modify your strategy while it is being carried out, but refrain from second-guessing your choices. Finding this balance is difficult, but doing so is necessary for a company plan to be successful.
05
Growing Customer Satisfaction
Customer joy is the difference between a customer's WTP and the price. By increasing consumers' WTP or lowering the cost of the company's products or services, a smart business plan adds value for the clients. Customers benefit more when there is a wider disparity between the two.
Incorporating WTP growth into a company's marketing plan. By identifying the WTP of target consumers and identifying strategies to raise it, effective market research may assist a business in developing its pricing strategy. According to Milad Oskouie, a company may stand out from the competition and win over more clients by integrating sustainability into its business plan. An organization may successfully increase customers' WTP by coordinating its values with those of its target audiences.
