Business Strategy: Strategic Planning for Performance and Survival

Business Strategy and Strategic Planning

Business Strategy is the path that ensures performance and survival. It covers the definition of objectives and the paths to achieve them. The strategy is the choice of ways to compete: where, how, when, and with whom to compete. It's the way to reach a goal, how to reach a desired situation.

Corporate Strategy

The corporate strategy is used to fully organize the company. This includes:

• Marketing Strategies
• Production Strategies
• HR Strategies
• Other Strategies

Strategic Planning Process

This is a sequential process of analysis and determination of different components:

1. Analysis of the current strategic situation of the company
2. Environmental analysis (threats and opportunities)
3. Internal analysis (strengths and weaknesses)
4. Development of a strategic plan for the organization (Where should it go? What should it do to get there?)

These stages can be played in any order, but the evolution of the variables should consider continuous monitoring by the administrator. Decisions are creating new situations that must be monitored and evaluated.

Analysis of the Strategic Situation

This is the starting point of strategic analysis. The main components are:

• Mission (or rationale of business)
• Performance (results achieved under the stated objectives)

The mission sets the purpose of the organization. This is useful for customers. Consider the following questions:

• Who are our customers?
• What business are we in?
• What is our value to customers?

SWOT Analysis

Within the company, the goal is to increase strengths and reduce weaknesses. In the social environment, the goal is to exploit opportunities and neutralize threats.

Opportunities

• New Export Markets
• Possibilities

Threats

• Growing market entry of new competitors
• Substitute products
• Entry of imported goods

Strengths

• Trained Human Resources
• Good Total Quality
• Technology Innovation
• Mission and objectives well defined

Weaknesses

• High cost of production
• Delay in the delivery of merchandise
• Human Resources without training
• Lack of Mission and Objectives
• Obsolete technology

Porter's 5 Forces Analysis

1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products
5. Rivalry among competitors

When to use Porter's 5 Forces Analysis:

• When you want to develop a competitive advantage over your rivals.
• When you want to better understand the dynamics that affect your industry and/or where you position it.
• When you analyze your strategic position and look for initiatives that are disruptive and make you better.

The Internet has changed some of the bases of Porter's original model from 1980. Porter himself has modified and adapted it to today's world.

Communication in Organizations

What is communication? Humans are immersed in the media. We are the product of communication. It is a process, and its effectiveness depends on the interrelationships within the company. The process includes the sensor transmission of information and meanings.

Flow of Communication in the Organization

Communication can flow:

• Downward
• Upward
• Laterally

Noise is a factor that distorts the message; it is an interference. Feedback is essential.

Effective Communication Skills: Active Listening

Active listening requires effort above that of talking and is exercised to listen without interpreting what is heard. Active listening means listening and understanding communication from the viewpoint of the speaker.

What is the difference between hearing and listening? Hearing is merely perceiving sound vibrations, while listening is to understand, comprehend, or make sense of what you hear.

Elements to Avoid in Active Listening

• Do not distract yourself.
• Do not interrupt the speaker.
• Do not judge.
• Do not offer help or premature solutions.
• Do not reject what the other is feeling.
• Do not tell "your story."
• Avoid counterarguments.
• Avoid "expert syndrome."