We describe strategy as the coordination of three elements:
The outcomes or goals you wish to attain.
The capabilities and resources you have at your disposal to achieve your goals.
The environment's potential and difficulties.
It
is critical to address each of these factors as you design your
business plan. Your business plan is the expression of your strategy.
The business planning methodology we utilise is intended to handle each
of the three critical parts of strategic planning.
Your business strategy is made up of four interconnected components.
A.
Planning - This section of the business plan begins with a description
of your Business Definition: Vision, Mission, Values, and Business
Opportunity. Your business plan should clearly express your vision for
the company and the direction you intend to take it. The vision
statement provides a response to the question "Where are we going?" The
mission statement defines your goal and provides a solution to the
question, "Why are we here?" Your value statement responds to the
inquiry, "What matters to us?" Values are the items or situations that
you desire to represent on a consistent basis. The business opportunity
is the final component in defining your business. This section of your
company plan will answer four questions: 1. How do you make a living? 2.
What do you do with your free time? 3. To whom do you sell? And,
finally, what do you sell them?
You should define targets when
you have properly articulated your Business Definition. An objective is a
definite, measurable result that must be achieved within a specific
timeframe. The first step in goal-setting is to determine your five-year
major objectives. Then you work backward to determine your one-year
goals. The final step is to assess where you are now. This is referred
to as a SWOT analysis (Strengths, Weaknesses, Opportunities and
Threats). After defining your business, setting objectives, and
conducting a SWOT analysis, you may now conduct an issues analysis to
identify the issues that must be addressed in order to match objectives,
systems, and capabilities with the opportunities and challenges
presented by the environment.
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