Developing and maintaining an effective company strategy typically involves a number of steps and questions.
These can vary greatly depending on the level of clarity a company has with their current strategy. When a company first launches, it is likely that both clarity and strategy are yet to be established or fully developed. When we encounter such businesses, we coach them through implementing a seven-step strategy that will provide clarity of their business model and a foundational structure from which to grow successfully.
In the first of our two-part series, we share the first three of these steps, working on the more fundamental aspects of your company strategy. Next week, we will delve into the remaining four steps, focussing on the ongoing strategies to maintain a healthy, effective business. We will also be sharing a downloadable Company Strategy Analysis for you to complete, featuring each of the steps required for you to develop greater clarity consistent, strong protocols within your business.
Step 1 Establish the Current State of Your Company:
- What is the company’s current market position?
- To understand the current market position of the company, it’s important to analyse its performance in relation to its competitors. This includes analysing the company’s market share, revenue growth rate, and profitability, as well as identifying its key competitors and their market positions. A market analysis may also involve conducting surveys or focus groups to better understand the company’s target audience and their perception of the company.
- What is the company’s financial situation?
- Analysing the company’s financial situation involves assessing its financial performance, including revenue, expenses, profitability, and cash flow. This may also involve analysing the company’s financial ratios, such as its liquidity, solvency, and profitability ratios, to gain a better understanding of its financial health. Additionally, it may be important to evaluate the company’s balance sheet and income statement to identify any areas of concern or opportunities for improvement.
- What are the strengths and weaknesses of the company?
- To calculate the company’s strengths and weaknesses, it’s important to conduct a SWOT analysis (strengths, weaknesses, opportunities, and threats). This involves recognising the internal strengths and weaknesses of the company, such as its resources, capabilities, and organisational culture, as well as the external opportunities and threats facing the company, such as changes in the market, new competitors, or shifts in consumer behaviour.
- What are the opportunities and threats facing the company?
- To discover the opportunities and threats facing the company, one must conduct a thorough analysis of the market and competitive landscape. This may include analysing market trends, customer behaviour, and changes in technology or regulations that may impact the company’s operations in the near future. Additionally, it may be prudent to assess the impact of potential economic, political, or environmental risks that may affect the company’s performance.
By answering these questions and conducting a thorough analysis of the company’s current state, we can help our clients gain a clearer understanding of their company’s strengths, weaknesses and opportunities, and develop a more effective company strategy that takes into account the business’s unique position in the market.
Step 2 Define the Company’s Vision, Mission, & Values:
- What is the company’s long-term vision for the future?
- Defining the company’s long-term vision involves clarifying where the company wants to be in the future, usually within the next 5-10 years. This vision should be both aspirational and inspirational, outlining the company’s ultimate goal or purpose. It should also be aligned with the company’s values and mission, as well as the needs of its customers and stakeholders.
- What is the company’s mission statement?
- A mission statement outlines the purpose and scope of the company’s activities, including its products or services, target audience, and overall value proposition. A well-crafted mission statement should be clear, concise, and inspiring, and should align with the company’s vision and values. It should also communicate to customers and stakeholders what the company stands for and what it hopes to achieve.
- What are the company’s core values and beliefs?
- Core values and beliefs are the fundamental principles that guide the company’s actions and decisions from within. These values should be aligned with the company’s mission and vision and should be reflected in the company’s culture, policies, and practices. Core values may include things like honesty, transparency, customer focus, innovation, teamwork, and social responsibility, among others.
- How will the company’s vision, mission and values be communicated and implemented in the organisation?
- Once the company’s vision, mission and values have been defined, it’s important to ensure that they are effectively communicated and implemented throughout the organisation. This may involve creating a company-wide communication plan that outlines how these principles will be shared with employees, customers, and other stakeholders. It may also involve implementing policies and practices that support the company’s values, such as employee training programs or community outreach initiatives.
By answering these questions and defining the company’s vision, mission, and values, we are in a more informed position to be able to help business owners and managers establish a clear direction for the company and ensure that all stakeholders are aligned around a common purpose. This can also help guide decision-making and ensure that the company’s actions are consistent with its values and goals.
Step 3 Conduct a Market Analysis:
- What is the size and growth rate of the market?
- To conduct a market analysis, it’s important to first identify the company’s target customers. This may involve analysing demographic data, such as age, gender, income, education, and geographic location, as well as psychographic data, such as values, interests, and lifestyle. It’s also important to clarify the needs and preferences of the target customers, as well as any barriers that exist in converting them to existing and loyal customers.
- Who are the competitors in the market?
- Analysing the company’s competitors involves recognising direct and indirect competitors in the market, as well as their strengths and weaknesses. This may involve conducting a competitive analysis that includes factors such as product offerings, pricing strategies, marketing tactics, and distribution channels. It may also be important to analyse the market share and market position of each competitor to identify opportunities and threats in the market. This can also be an incredibly valuable activity in assessing where the company may improve, or generating fresh product and marketing ideas to better compete with business adversaries.
- What are the trends and changes affecting the market?
- Analysing the market trends and drivers involves highlighting factors that may impact the company’s performance in the market. This may include macroeconomic trends, such as changes in consumer behaviour or technological advancements, as well as microeconomic factors, such as changes in industry regulations or market saturation. Understanding the market trends and drivers can help the company anticipate changes in the market and position itself for success.
- What are the opportunities and threats in the market?
- To identify the opportunities and threats in the market, it’s important to conduct a thorough analysis of the market and competitive landscape. This may involve analysing market trends, customer behaviour, and changes in technology or regulations that may impact the company’s operations. Additionally, it may be important to assess the impact of potential economic, political, or environmental risks that may affect the company’s performance.
By answering these questions and conducting a thorough market analysis, we can help the client gain a better understanding of the market and competitive landscape, identify opportunities and threats, and develop a more effective strategy that takes into account the needs and preferences of its target customers and the dynamics of the market.
These three steps will establish your company’s baseline, providing the building blocks for your company strategy.
Next week will take the next step, analysing the systems that will help you navigate your ongoing company strategy. Implementing these steps provides the framework for business health and growth.
And don’t forget to tune in next week to receive your FREE Company Strategy Analysis download.
Until next week, enjoy the process!