Businesses need a roadmap or strategic plan to define company values, create a singular vision and chart a direction for growth. The process begins with crafting a mission and vision statement, defining company objectives, and performing an analysis of company strengths, weaknesses, opportunities and threats. This analysis is often called a SWOT analysis. Business leaders use this information to create, implement and review company strategy on an ongoing basis.
1. Craft solid company mission and vision statements and communicate them internally and to your target audience. The company mission and vision communicate core company values and state specifically why a company is in business. These statements are the basis on which strategic planning, marketing strategies, product development and ultimately customer service are built. An example of a company mission statement might be, “To be the leader in providing the best value to our customers through a commitment to quality products, innovative solutions and superior customer service.”
2.Develop concrete company objectives on which company goals and direction can be built. A portion of company objectives may be apparent in the mission and vision statements, but the specific objectives need to be defined. An example of a company objective may be to expand into an international marketplace or to be the largest regional provider of a product or service. Clearly defining a major aim a company wishes to achieve is the first step in defining a specific direction for growth.
3.Perform an analysis of company strengths, weaknesses, opportunities and threats, often called a SWOT analysis. In reviewing strengths and weaknesses, a company examines all internal company structures and processes to seek out what is working and what is not. The strengths and weaknesses are the internal challenges a company must face to achieve growth. In opportunities and threats, a company looks at the external factors that could help or hinder achieving company objectives. If a company has a new product it wants to introduce overseas, a SWOT analysis may reveal that though the product is strong, the company lacks knowledge in overseas marketing and distribution. An external analysis could reveal partnership opportunities to overcome a lack of company experience and existing foreign competition. Company goals and specific plans of action are based on this analysis and recognition of internal and external factors.
4.Define core strategies through goal setting and project implementation. Goal setting involves reviewing the SWOT analysis to identify reasonable goals for a company. An example would be that based on the SWOT analysis, a company goal is to contact potential overseas partners with experience in marketing similar product lines to introduce a highly competitive product offering into a foreign marketplace. These goals are then defined further by being assigned to specific individuals within the organization for implementation.
5.Regularly review company objectives, goals, implementation plans and operational results. Without periodic review of these factors, the work performed in developing strategic goals will be wasted. An example would be if after successfully introducing a new product in an overseas market, a company did not assess competing foreign products and companies and a competitor could manufacture a cheaper version of the same product and steal market share. With proper review and competitive analysis, a company would know about the threat and be able to address it through new strategy.