In addition, when developing a business management strategy, the following are used:
Pricing Analysis. The success of many of the world's largest companies is largely due to the flexible pricing policy of their products. For example, the high profits of the Walmart retail chain are the result of selling its products at relatively low prices, which, given its large customer base, increases sales.
Resource allocation planning – formation of a financing model and methods of attracting investment.
Presentation of the plan to partners , clients and anyone else the company wants to know about it.
Analysis of legal aspects. This architect data package planning stage involves developing the basic legal models that allow you to create a business and manage it effectively.
Elements of Business Strategy
Criteria for choosing a business strategy
Its development is necessary for any enterprise for development and should be accompanied by setting tasks, as well as taking into account the circumstances accompanying their solution. It is extremely important to correctly assess the environment in which business processes take place. Having assessed all the factors that can contribute to or hinder the achievement of the set goals, it is possible to correctly determine the strategy and ways of its implementation.
The business environment is assessed taking into account the following parameters:
predictability – the ability to forecast the prospects for business development;
plasticity – the ability of the environment to be corrected;
aggressiveness - the suitability of existing conditions for the survival of the business.
Based on the analysis of the specified indicators, one of five types of environment can be identified with the subsequent selection of an appropriate strategy. The business environment can be:
classical. This type allows you to predict business development, but is not subject to correction;
adaptive. It does not allow for accurate forecasting of business prospects and is also not subject to correction;
visionary. Provides the ability to predict and is subject to correction;
formed. Complicates forecasting, but can be corrected;
recovery environment. Characterized by a minimum of effective resources.
The development of a business strategy and the choice of its type should be carried out taking into account the environment. For example, the classical one is optimal for the application of plans based on large scales, selectivity in approaches and the use of the company's accumulated experience.
Criteria for choosing a business strategy
Business strategy in an adaptive environment requires constant experimentation due to rapid and unpredictable changes in the environment.
Visionary allows companies to succeed as pioneers, focusing their efforts on developing new markets or taking a leadership position in an already developed field of activity.
The characteristics of the environment being formed make it possible to influence the market segment being developed by the company, adjusting it in the required direction depending on the actions of competitors.
The recovery environment is characterized by aggressive conditions in which the company must focus serious efforts on preserving existing resources and survival, as well as finding ways and means to operate successfully using one of the roadmaps mentioned above.