Perils of Poor Business Strategy
Having a business strategy allows you to have a clear understanding of your business goals and how you will achieve them. It also enables your business to identify its core capabilities and weaknesses.
Many leaders believe they have a solid strategy in place, when in reality, they don’t. It is common for a business to implement a poor strategy that overlooks the importance of choice and focus, to instead make room for a range of inconsistent interests and demands. This strategy welcomes the language of broad ambition and values, covering up its failure to direct.
This tends to involve having a strategy just for the sake of it – because common-sense believes that every good business has a plan. However, what you get out of a business strategy is what you put in it.
A poor business strategy tends to stem from:
Lack of adaptation to a changing industry or market. Creating an effective business strategy involves giving attention to shifts in the business environment, setting priorities and recognising the importance of pursuing results. Understanding your industry and focusing on getting results is crucial to business strategy.
It’s common for a business to drift away from its consumers when there’s no strategy in place. This leads to ineffectiveness in the market, resulting in no profit making. Therefore, having a business strategy is a means of remaining competitive and relevant within your industry.
Such perils can be avoided by creating a strategy for your business. To prepare yourself for long-term growth and profit, you must understand what’s happening within your industry and its market. Due to the advancement of technology, the rate of change in business grows faster with each year. It’s important that as a business leader you understand how trends will affect you, and what steps you need to take in response.
Having a purpose, goals and steps towards reaching those goals will keep your business stay on track. It ensures that you’re always ready for the next change.
A great way of putting together an effective strategy is to talk to someone. Our business consultants are always happy to help you develop a winning strategy for your business.
Read How to Develop a Business Vision for great business growth tips from 9East Managing Director, Amjad Khanche.