In order to build a business strategy, at first need to define the objectives and targets set in mind, then to know the current status and future obstacles if any.
During the work on the development strategy, measures should have a positive result and effectively complement and combined with each other, also funds and efforts should be focused towards the achievement of long-term and short-term targets.
Identifying strategic options will help solve some problems, such as:
- Evaluation of the real possibilities of the company to determine the course of improvement, development of the chosen strategy and the search area for change in strategy;
- identifying possible changes in strategies that will create specific benefit in the future, and be able to adapt fast to changes.
Main Strategy for small Business:
Build the Development strategy according to all factors, which should be dealt with in your organization. Different strategies used by firms actually represent only a small number of sets of basic solutions. Each of these strategies has a positive result only under certain conditions. In business, there are four basic strategies:
1. The Strategy of achievement goal - move to the next goal above. This strategy adapts to changing conditions. In this case the risk is minimal. This strategy used by companies that are entrenched in certain areas.
2. Growth strategy. Development occurs by dynamically changing technologies. Such a strategy used by companies wishing to secure a rapid growth.
This strategy contains:
- Diversified Growth Strategy (the release of new products and offer new services);
- Integrated growth strategy (internal expansion and improvement);
- Concentrated growth strategy (development of goods and services, strengthening the market position).
3. Reduction Strategy: reduction of the business in the market caused by certain conditions.
4. Integrated strategy: consists of a combination of previous strategies. This strategy is used by large companies, which operate in several industries.
Developing any strategy must comply to the potential of the company.
Organization changes and improvement begins from a complex of actions, such as changes in the structure of company, the definition of new goals, resolution of organizational problems. To ensure a stable growth of the company, need to periodically review and evaluate the effect of the changes made, customize the course of development under certain conditions. Detailed inspection and analysis of reports on the activities of the company is important.
There are some types of changes in the organization needed to implement new strategies:
Moderate corrections. The most common changes. They are required when introducing new products and services on the market and the expansion of the area of marketing. Changes are mainly related to a marketing company or establish new production. This is the time to attract new customers, sales channels and search advertising distribution.
Radical changes. The need for radical change occurs when deep structural transformations within the company, merger or division organizations. The release of new products and new structural divisions lead to the need for changes in the company structure.
Complete reorganization. Such changes are needed in the transition of the company into a new market or activity. Changes concern all the processes and activities of the company.