ARTICLE 3: CAN YOU SAY WHAT YOUR STRATEGY IS?
In the real market, the large number of organizations/companies/executives/ frontline employee are frustrated and lost their sense of direction because no strategy exits for the company or its line of business.
A strategy statement should be designed in which the necessity of having a simple, clear, succinct that everyone can internalize and use as a guiding light for making difficult choices.
Elements of strategy statement
There are three critical strategy components of a good strategy statement: objective, scope and advantage.
* Objective = Ends
* Scope = Domain
* Advantage = Means
The executives should be forced to be crystal ...view middle of the document...
An effective strategy is not focused on satisfying all the needs in all market segments, as if doing so will be distributed enterprise resources and efforts. Therefore, businesses need to set limits on customers, products, geographic location or vertical integration to focus and best meet customer needs - it is the strategic scope.
Scope of the strategy is not necessarily accurate description of what the company needs to do but very clear and convey to employees. For example, a bank doesn’t expand credit to business customers (that price volatility as real estate, securities). This is necessary so that the middle managers do not spend too much time on the project which will then be dismissed, because they don’t fit the strategy.
A firm can choose to focus on one or a few meet the needs of customers such as:
* Focus on the many needs of a small number of customers as in the case of An Phuoc offers many different products (shirts, trousers, suitcases, shoes...) for business and officers with high incomes.
* A firm can also choose to focus on many needs of customers in a small market sector.
Define the scope is based on market principles with real needs and real business understand and can meet that demand.
3. Defining the advantage:
A sustainable competitive advantage is the essence of the strategy. It...