Does a perfect business strategy really exist?
For budding businessmen, there are several terms and concepts that seem overwhelmingly complex, and one of them is strategy. In your own experience and opinion does a perfect business strategy is really exist? If so, how are the businesses coping up today.
not really but i think experts do create strategies to suit various businesses
Strategy needs to fit the need i.e. steer away from stereotyped formats that corporations may need when comprehensive data is required. Example: redesign the strategy document into simpler form to fit the smaller entities. A small business strategy needs to embrace the aspirations of the owner by planning ways to create value in the entity derived from the resources and competencies of the owner. The strategy will need change as the organisation grows. There are six 'strategy schools' and this can become complex for beginners so providing a strategy they can execute is a good start - from there on in all strategy needs to be refined as it must remain dynamic as no strategy can control the external forces at work. It must therefore be dynamic and should be reviewed at least every time a direct competitor does something that could affect your business. Its like a roadmap which changes at the roadways are upgraded and redesigned to fit match growing levels of traffic. In my view that's about as perfect as you could expect because static strategies are inevitably doomed to failure by the passage of time.
In my view they do ,
1. What is a real strategy
A strategy is a moving plan , like in sport a strategy is only valid if the execution is of quality and it achieves the desired result else you have to strategically adapt
Like in many areas, copy and paste techniques don't work here! You can't copy someone else's strategy and try to use it for your business. Yes, you can see what others are doing and use them as a guide but it's best for new startups to try and test different tactics and see what works for your business. In the first year of business, you're just learning the ropes. You may not even have the right business model or even know what your core product or service is. You will test different methods and see what works until you get what's right for you. For that reason, you need to have adequate funds to keep your business running during the first couple of years because you may not be able to make enough revenue to breakeven.
Your strategy is a high level guide on how you will achieve your business Mission (what you want your business to be in the future) Unless you make the strategy a living, evolving guide it's just a nicely bound document in your bookcase. As customer needs and wants, technology, costs, management skills etc are always changing, a perfect strategy can only be for the moment you finish creating it (and even then its doubtful) the business world evolves rapidly and the changes need to be factored into a changing strategy that reflects current conditions
Does a perfect business strategy really exist? I would liken it to "Does the horizon really exist?". The horizon is a mental construct. You can never reach the horizon as it is an ever moving target, but something we strive for...much like excellence.
I will say there are two key ingredients to pursuing the perfect business strategy:
1. Culture. Culture eats strategy for breakfast everyday. So if you have a near perfect strategy, but yer culture ain't right. BOOM! Strategy is dead.
2. Flawless execution. If you have a supportive culture to your strategy, it all comes down to flawless execution in all areas and in an effective manner (the right things a the right time for the right length of time).
Your strategy is a map, a flexible framework to make values-based decisions from. Unknown opportunities can present themselves. By having a strategy in place at lest you have something to compare opportunities with.
So I would say no they don't, but you should pursue it everyday! I believe that have a clear purpose is more important than a perfect strategy.
"If you become the prophet of your purpose, you will profit from your purpose." a Clarism.
The Prophet for Purpose
I would like to say thanks to all of you who participate and share some experiences and opinions about this topic. I would like to sum up my sentiments and appeal to fellow business leaders to rethink their business strategies with this insight from Cynthia Montgomery: “strategy has been narrowed to a competitive game plan, divorcing it from a firm’s larger sense of purpose; the CEO’s unique role as arbiter and steward of strategy has been eclipsed; and the exaggerated emphasis on sustainable competitive advantage has drawn attention away from the fact that strategy must be a dynamic tool for guiding the development of a company over time.“.
Yes, of course. even though there have been thousands of different business trategies developped for all kinds of businesses and some of them failed, it's not sufficient to negate the existence of perfect business strategy. How to define perfect may be in a little variance, basically we could hold that the business strategy is perfect if the strategy has been developed in right direction, in right time, practically well implemented and aachieve right target. For one simple example, nowadays in China, automotive industry is booming, many companies developed their business strategy to following this big theme, like logistics companies, automotive has been targeted as the focus of business growth, with this strategy, the resources have been deployeed accordlngly to support.
You need to focus on achieving your goal first then set up your plan accordingly, this is the most workable business strategy.
No, there is no perfect business strategy - It does not exist. It is all in your gut to make it "perfect". It must address all core areas, risk management, financial control, implementation phases, ........ well a whole lot of things becomes part of perfection. Dream it, visionalize it, market it and act it out.
I haven't seen a perfect business strategy to date because there really isn't one. A perfect business strategy is based on making the right assessment's that will lead you to make the correct changes once you implement your strategy. External factors, taste, etc..... are some of the things that you can't predict with a hundred percent certainty.
Incrementally experiment starting from the tiniest proportion possible.
Yes. One that foresees change ahead. One that keeps an open mind to accept an embrace it and sometimes lead it.
There is a different between strategy and tactics. The strategy can be "perfect" but the tactics and execution need to live up to that. Strategy is not about perfection, it is about success, and that definition is in the goals of the holder.
Yes. Perfect for your business, of course.
And if you want to work on it and find it, you can give me a call.
Have a great day.
There is no perfect business strategy. With so many variables and changes in a business environment, your strategy must change and adapt to these trends. Not being able to adapt will only setup a business for failure. You should always be reviewing your strategy to ensure your business goals and results are inline with your vision and strategy.
In the times we live, one can develop a strategy that will move the business forward. There are at least two things that are going to keep the target moving. One is the customer base. Their needs , approach as well as personnel will change. One must adapt to any and all changes. The most successful will anticipate these changes via contact with the customer. Some will drive the changes based on feed back from the customer as well as the marketplace changes. In my experiences, driving change and looking for feedback help our company be on the cutting edge. If one decides to be static then everything become static. One does not want to be viewed as static but needs to be viewed as progressive.
Business strategies and plans thereof evolve and change with Market dynamics.
There is no one shoe fits all approach.There are many ways/roads to approach your destination.
You need to start with a very clear idea broadly, of the,
• Product proposition and placement
• Size of the market and the methodology to achieve the same.
• Your competitors and their USP vs yours.
• Clear thinking and goals
• Unwavering belief in yourself and your plans
• Fall back plans A & B, in case the original strategy is too ambitious/unrealistic in the short term.
• Incredible attention to Customer needs corresponding with your product/services offering
• 100% buyin of your entire staff and stakeholders.
Having said that, Business strategy and plans should be very clear and concise,yet ever evolving,keeping your goal firmly in sight.
Hey Knut. No it does not. Example. Shell came up with a program and where customers could save stamps for a towel. Nobody could imagine what happened but within 5 years every household in Holland had at least one Shell towel. Was is it strategy. No! It was just a combination of factors. So a winning Business Strategy has a lot do with old good luck, a good product and a good distribution.
If you listen to CEO's of FaceBook, Zappos etc. it was may a time a 'idea' that looks great but not sure if it will work. So do your best, get the best strategy and just go with the flow! Grtz. David Rakers - CEO - Business Coach/Success Coach