This statement expresses the organization's values and aspirations; basically its reason or purpose for existence. Based on this mission statement the firm will formulate its business strategy.
It can set the direction, provide objectives, specify the desired corporate goals, but does not take you there. That important step is left to the strategy execution.
What does that consist of: If each of the functional strategies are aligned with the business strategy and support the goals set by the business strategy, then it becomes a powerful roadmap for achieving the desired results. The rest of the discussion deals with the functional and deployment level strategy and execution, and tries to establish the correlation and the need for alignment among these three levels of strategies.
I am using the words "functional strategy" to emphasize the fact that functional capabilities provide functional competencies that allow the corporations to achieve their strategic goals, as well as establish competitive advantage in most cases.
This is also the premise of competitive advantage that Porter talks about in his strategy discussions. The "deployment strategy" is primarily a reference to technology strategy since technology has become the de-facto enabler for the business processes, and it directly affects the cost of creating, enhancing and maintaining such capabilities.
SPS is merging with ASP, the Association for Strategic Planning. Please go to vetconnexx.com For residual SPS queries email: [email protected] Essentials Guide to Strategic Planning Welcome Strategic Planner! To assist you throughout your planning process, we have created a how-to guide on The Basics of Strategic Planning which will take you through the planning process step-by-step and keep you on track. Whether you’re looking to set new business priorities, outline plans for growth, determine a product roadmap or plan your investment decisions, you’ll need a strategy.
This enabling technology is generally seen as a support activity in conventional strategy literature, but the acute dependence on technology for day-to-day operations has changed the way companies must plan for technology today.
Functional strategies most important to a retailer would be the strategies for supply chain, merchandising, and store operations. Depending on the business of the corporation, this focus may change.
In retail or manufacturing industries, supply chains will remain a huge focus area for developing process competency through strategy planning, as a very large part of the corporate operations fall within the scope of supply chain management processes.
Ensuring that the supply chain strategy is aligned with the business strategy not only helps reach these goals, but also provides an objective method for prioritizing the supply chain initiatives within other organizational and functional constraints.
An example of such organizational constraint can be the available funds that must be spread across all functional initiatives including the supply chain. An example of a functional constraint can be the unavailability of consistent item master data across various stores, that may then constrain the ability to correctly plan for the optimal inventory across the enterprise.
A functional strategy defines the guidelines for the prioritization of functional areas where the development of organizational competence will get the biggest rewards.
Consider a retailer whose business strategy revolves around providing value pricing. This strategy can be achieved through merchandising functions by changing assortments to cheaper products that functionally serve the same utilitarian function as a more expensive product, or by creating store brands where costs are closely controlled by the retailer.
The same strategy can also be achieved through improving supply chain functions that reduce the cost of operations like better inventory planning, transportation optimization, cross-docking; by having a lower cost basis, the savings can then be passed on as value based pricing.
The strategy objectives can also be reached through enhanced store operations like better labor planning, reducing floor associates through installation of price checking stations, product finder stations, and self-service POS lanes; again the savings can be passed to the customers in the form of value based pricing.
Which one of the above is the best course of action? This question can only be answered by rising above individual functions and considering all of the following: What is the target for value based pricing?
How much difference does the retailer wish to maintain with the competition? Is changing assortment for pursuing the value based pricing even feasible?
This could be true for commodity items, but not where consumers value the brands. What is the potential of each strategy for providing the value based pricing, which one provides the largest profitability potential?
What is the cost and time for implementation of each of the functional strategies? What other benefits each of the strategies provide? As none of these solutions work in isolation, they do have other consequences as well.
For example, reducing knowledgeable store associates does affect customer service negatively. What strategies produce synergies with other corporate goals?A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it.
If you jot . Introduction to Strategic Business Planning .. 1. All types of business need advertising and marketing assistance to help generate awareness, interest, and ultimately, profit. Obviously the Internet has changed the landscape of advertising by adding another media form, the presence of which appears to be everywhere.
Business strategy alone can direct, but does not deliver. It can set the direction, provide objectives, specify the desired corporate goals, but does not take you there. A worldwide network of international strategists, both in business and academia – a strong community of peers and specialists.
STOP PRESS – SPS event at CASS Business school in London on 13th December. The Business Plan is the result of a strategic planning process by which the actions required to successfully create and develop a business are determined.