STRATEGIC MANAGEMENT

1. Why build a business strategy?

Planning is the first step in deciding management decisions. Business strategy will help the organization to have a common direction, concentrating resources and efforts to achieve goals in a volatile environment and limited resources. The corporate strategy includes a vision system, vision, mission, core values, business goals, and strategic directions. Corporate strategy can include three levels: corporate strategy, business strategy and functional strategy. This system is indispensable in any business. It is the guideline for every action of the organization to achieve the goals set and bring the highest efficiency for the organization. That is the way to success for each business. Therefore, the business must have a clear, consistent and cross-cutting strategy in every activity.

2. When to develop business strategy?

Strategy is always needed for every organization and business from its inception. But it will become imperative when businesses change in size or slow down their growth. Strategies must also be reconsidered when the business environment changes dramatically in the marketplace, consumer psychology, technological breakthroughs, or changes in the new workforce. The strategy demonstrates the will and determination of the business leaders as well as the cohesion and unity of all staffs and employees in the whole enterprise in order to achieve the goals set and bring remarkable results. for business operations.

3. Basic Steps in Building Corporate Strategy:

• Review and evaluate the effectiveness of current strategy, position and competitiveness of enterprises;
• Analyze the business environment of enterprises, review trends and changes in the PESTEL environment, the industry environment, and 5 competitive forces to accurately identify the opportunities and challenges of enterprises and individuals, assuring success in the industry;
• Establish the vision, mission, core values ​​of the business;
• Establish strategic goals and long-term development plans;
• Developan overall action plan to implement effective strategies through such functions as human resources, finance, marketing, production, research and development;
• Develop strategic control tools in accordance with input and output standards, BSC systems, KPIs and organizational culture.

4. Method of implementation:

Business strategy development must be based on practical and objective analysis, closely aligned with the goals of business leaders. At the same time, in order to achieve high efficiency, there must be a close cooperation between enterprises and consultancy units.

Consultants, with the objectives of the third parties, will collect and survey data as well as analyze and propose policies. At the same time, the consultant will act as an advisor to help the company implement the strategy outlined, shorten the time and create the highest efficiency to achieve the goal.

On the method of coordination: the two sides will adhere to the following principles:

• Direct exchange, goal unification;
• Jointly develop action plans;
• Actively implemented and timely feedback;
• Continuous interaction, periodic reporting.

Counseling must be based on critical thinking, effective analytical and synthesizing capabilities, supporting roles, motivating goals, promoting the capacity to develop, not allowing changes and causing passivity to the client-side management team. Businesses only exist and develop with an appropriate strategy and the efforts of the management and staff. Effective counseling must promote the strategic role, the capacity to organize and the strategic ability of the client.

5. Achievements:

After the implementation of the counseling program, depending on market requirements and leadership needs, the program’s product may include all or part of the following results:

• The results of the system analysis on the internal and external environment of the business, helps business leaders better comprehend the management system.
• Build the vision, mission and core values ​​of the business.
• Establish strategic objectives of the business orientated activities of the whole organization.
• Formulate company-level, business-level, and functional-level strategies logically and systematically.
• Develop strategic implementation solutions of the whole enterprise.
• Develop strategic control tools such as BSC systems and KPIs, input and output control standards.
• Strategic solutions for organization, personnel, corporate culture, business model, business model and core competencies.

Successful businesses must have a sharp strategy. 90% of successful businesses in business think that there is a contribution of strategy. The consultant will always accompany the business to solve problems, provide solutions to help businesses develop sustainably in the competitive environment.