Business strategy is vital for any company seeking to grow its business in a strategic manner, but what exactly is a business strategy? Put simply, it's a clear set of plans, actions and goals that outlines how a business will compete in a particular market, or markets, with a product or number of products or services. But while simple to understand in theory, developing a good business strategy - and then actually implementing it - is no easy task. Watch the video of Professor Watkins on the skills needed to turn experienced managers onto business leaders.
A business strategy must take into account a number of factors including the market, competitors, and the business environment, as well as the company's structure, strengths and weaknesses. It should also be flexible enough to handle change. Planning and preparing a business strategy therefore requires strong skills in strategic planning and business analysis, as well as a good understanding of functions like marketing, sales, and distribution.
Business strategy involves covering off the basics, as listed above, but what is needed to formulate a successful business strategy? Today's world is in continual change. Business is not the same today as it was yesterday - or what it will be tomorrow. So any business strategy must be flexible, adaptable and anchored in up-to-date research.
Devising good business strategies involves a number of core steps:
Understanding what is required to develop and then implement a good business strategy is one thing - how can you improve your skills to actually do it?
Trial and error is one approach - but a business management course focused on strategic management, business strategy development and/or inspirational leadership is probably better. At good business schools you can benefit from the knowledge of world-class professors, as well as relevant case studies and practical learning tools. Training that is flexible enough to address your own challenges will be the most impactful - and have the most immediate returns when it comes to developing and implementing a successful business strategy.
Discover how IMD's Transition to Business Leadership program can prepare you for more senior positions. Download the (NEW) program brochure now.