Why strategy is important for your business
The Covid-19 pandemic is changing the way we live, work, and use technology. As the world adjusts to its new normal, business leaders need to rethink strategies to drive resilience and emerge from this crisis stronger.
India’s economy was already in the grip of a slowdown when the virus hit. Since then, the global lockdowns have resulted in a sharp pullback in economic activity. The disruption to normal business activities and supply lines is likely to have long-lasting repercussions, and the situation might get worse as India grapples with softening demand, shortages of raw material and drying up capital.
Not all businesses get it right straight away. There are natural weaknesses within all organisations for various reasons. What a business strategy does is try to remedy these weaknesses so that companies don’t trip up and suffer their impact too greatly. Strategies look at these future risks and help develop ways in which they can overcome these obstacles.
In order to best determine the future direction of your business, it helps to understand where you are positioned in the market. Strengths Weaknesses Opportunities and Threats and in particular the main causes therein – are key learnings all businesses can use to evolve. A critical assessment of the current and historical performance of your business and factors impacting it may assist with gaining a better understanding and help shape direction.
Sometimes taking the leap of faith to move away from doing things the way they have always been done and implementing change is a difficult hurdle for management or business owners to overcome. In these instances obtaining external assistance may assist. An independent review, undertaken in conjunction with management that summarises the relevant factors impacting performance can be the catalyst for driving strategy going forward.
Gaining an analytical understanding of where your business is positioned in the market, aids you in determining the direction in which your business should head in order to achieve desired objectives. This is where a detailed business strategy document may assist. A business strategy outlines the tactics, methods and pathways employed by a business to achieve future goals.
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