Business Strategy Networks: The Ultimate Guide

In some industries the status quo has dictated highly bundled, expensive products or services. Unbundling them is another way to build a contrast strategy. Various segments of the market may prefer to get differing subsets of the bundle at better prices. Challengers’ unbundling of the status quo has been facilitated by the inter net in one industry after another: Music, TV, and education are leading examples. Incumbents have to make major internal changes to compete with unbundlers, rendering this approach especially effective.
Ratio analysis not only supports the assessment and definition of decisions, it also helps to monitor them and avoid inappropriate or damaging actions. Its role is threefold: to analyse; to monitor and measure performance; and to facilitate future plans. Ratio analysis is often used to support systematic analysis of suppliers, customers and competitors, as well as general market and industry trends.
Have the courage and honesty to practice zero-based thinking in every part of your life, and then to follow where your answer leads you. If a person or a product has not worked out, and it is clear that the situation is not going to get any better, cut your losses. End the situation and move on.
When your company is coherent, you don’t have to struggle to overcome the strategy-to-execution gap. There is no gap. All your products and services are supported by the same group of distinctive capabilities, serving the same value proposition. Your strategy is thus inherently executable. Your growth is supported by the capabilities you already have, augmented by those you know you can build.

Your Most Important Work

Because knowledge is often an important source of competitive advantage, it is essential to protect it. Knowledge falls into two categories: explicit knowledge, such as copyright or information codified in handbooks, systems or procedures; and tacit knowledge that is retained by individuals, including learning, experience, observation, deduction and informally acquired knowledge.
Small businesses need to understand their revenue and profit models so that they’ll know if their model is sustainable or will fizzle out well before it takes off. Similarly, your pricing has to be in line with what the market will bear so that it will provide you with a profit. How well does your model work? Really?
A repeatable formula is one of the most powerful elements of the adjacency strategy. Nike moved into one sport, then another, then another, always following the same pattern. The repeatable formula in most cases is built on insights into customers that can be applied to different products or customer segments. These insights include understanding and evaluating the cost and profit economics of customers, purchasing related to life cycle events, and share-of-wallet opportunities.
Coherent companies deliberately commit themselves to an identity based not on what they sell, but on what they do. Having made this commitment, they only enter competitive markets where they believe they have a “right to win”: where their identity and their capabilities give them an edge.

Broadening Impact

The simple discipline of defining a capability gives you a much clearer view of what you are trying to build, and why it matters. For solution selling, the stated definition was: “To build long-term strategic relationships.” They would communicate directly with the automakers’ technical specialists, instead of just the purchasing staff, and build their own financial models of the products, so they understood the costs and potential revenues, before signing the contract.
How well any business understands its adversaries is a determining factor in whether it wins or loses. Understanding the strengths, weaknesses, and realities of your organization is fundamental, but it is, at best, 50 percent of the equation.
A hallmark of true expertise and insight is making a complex subject understandable. A hallmark of mediocrity and poor strategy is unnecessary complexity — a flurry of fluff masking an absence of substance.
A business strategy helps underpin an organisation’s other important strategies – for example, functional operational strategies – and helps staff, customers, investors, and other stakeholders better understand how it plans to achieve its goals.

Strategic Areas For Consideration

Create a list of potential key projects (including existing key projects such as upgrading IT) based on a strategic profile and product/market matrix , then analyze and prioritize every potential project. This pool of projects is your action plan for the strategy.
The amount spent on research and the priorities and methods used affect profitability. Too little expenditure may result in larger costs in the long term. The shelf-life and appeal of a product should be considered when deciding whether to continue production or not. The number and quality of suppliers are also important. Decide what the buying policy should be (for example, will you have a small number of preferred suppliers or a bidding system among a larger number of potential suppliers). Consider techniques for controlling delivery charges, monitoring exchange rates, improving quality control, reducing stockholding and improving production lead times.
In a time of transition, the standard advice offered by consultants and other analysts will be to adopt the strategies of those competitors that are currently the largest, the most profitable, or showing the largest rates of stock price appreciation. Or, more simply, they predict that the future winners will be, or will look like, the current apparent winners.
When they look at their portfolio with an eye toward capabilities fit, many companies realize that some offerings don’t fit their chosen identity, even if the offerings are individually successful. Other companies have the capabilities to do better with these offerings and are benefiting from the resulting advantage. That is why a growing number of companies are divesting businesses that don’t quite match their capabilities system — so that they can release funds to acquire products and services that fit more closely.

Discussing Strategy Across Cultures

To start something new, you must stop doing something old. Your dance card is full. Your resources are already taxed to the full, if not overtaxed. To do something new in the future, you must free up time and resources by discontinuing things that you are doing today.
An international strategy is often the first strategy companies use when they expand to secondary markets, and that’s because it’s the most accessible of the four. It’s essentially an extension of your domestic strategy, operating with a central or head office in your home market and exporting your products to target markets.
A Differentiation Strategy is for firms that want a broad customer base based on their uniqueness. Typically, firms with this strategy will focus on building unique features to win in the marketplace. They also usually charge a higher price to their customers, to offset the cost of being unique.
Keep the strategic communication and metrics flowing constantly, and celebrate the successes and course corrections that accelerate the strategy. Companies should be in a “flow state” where information is constantly available and is driving decision making throughout the organization.

Look Across Time

It’s critical to understand what your organization is and does, as well as what it isn’t and doesn’t do. The all-things-to-all-people trap can be a barrier to understanding and clearly defining an organization’s offerings. Fearful of losing a sale, small-business leaders can be unwilling to put a stake in the ground and say, “We sell product or service X to this market.” That bold declaration doesn’t just define what you sell and to whom; just as important, it defines what you do not sell and to whom you do not sell.
The functional model of organizations is an important reason why so many companies struggle with the gap between strategy and execution. It makes a company good at many things, but great at nothing. When functional boundaries prevail, there is no construct for managing capabilities. It isn’t clear who owns the capabilities, how to track spending on them, or how to connect them to the strategy or to each other.
In a world where CEOs are overcaffeinated, stressed and time-starved, many have been romanced by easy-to-use strategic templates that yield a quick-and-dirty business strategy. However, downloading a template tends to promote short-sighted thinking and poorly-executed strategies. The result is often something closer to a short-term operational plan than a true strategy.
Every leader wants to avoid major strategic mistakes, but, in a complex world, it’s hard to anticipate all the forces that might impact your goal. It’s vital to find weaknesses in your strategies before you implement them — and to develop a rigorous process to do so.

Business Strategy Approaches

When every step is planned, every resource is allocated, and everyone knows what is to be done, business activities become more efficient and effective automatically.
For decision-makers, the significance of their decisions is inversely proportional to the number that they make; typically, senior executives make only a few, important decisions. It therefore matters especially that strategic decisions which will have a significant impact are intelligently and soundly made and thoroughly and effectively implemented.
Business units need to have principles and fundamentals in place. While your company may decide that setting up a new office in Tokyo to expand its international presence is part of its global strategy, your business unit may then need to assess if its products and offerings need to change amid new competitors in the Japanese market. Either way, understanding the steps to setting a strategy, communicating it to your employees, and executing it will be critical for leaders at any level.
Strategic planning is something you cannot do by yourself. It’s like dentistry or medical work or the law. You have to get someone who is objective, who has knowledge and exposure to different industries, and who has studied in and is experienced in strategic planning.

Facing The Toughest Questions

Two common mistakes beset decision-making. The first is to react to a situation as if it were a unique series of events, when the problem it reflects is a generic one requiring the application of a consistent rule, principle or strategy. This results from an inability to see the big picture or to understand where the events might lead. The second is to perceive a situation as if it were a generic issue requiring an old solution; if it is a new type of situation, a new solution is required.
For public companies, the issues surrounding the “beat or miss” quarterly updates are well documented. Short-term scrutiny leads to short-term moves, activist shareholder shenanigans, and other tricks used to bump up the price of the stock. These pressures distract company leaders from the company’s long-term health.
What are your most profitable products and services? What are they today? What could they be tomorrow? Who are your most important and valuable customers today? Who could be your best customers tomorrow, and how could you attract and keep more of them?
For businesses selling through different channels – direct, online, via agents or retail outlets – conflicts can arise unexpectedly, and the various sales channels should be evaluated during the product development process. This means assessing the value, significance and potential of each channel. The most profitable ones should be maintained, and those with potential should be nurtured.

The Difficult Part Is Understanding The Problem

Technology did not invent a new business paradigm, but it has transformed business, opening up a multitude of ways to add value, increase sales, reduce costs and manage more efficiently. Understanding the nature of this transformation is valuable for decision-makers.
A great CEO isn’t afraid to look at the downside and answer the hard questions he or she hopes will never become a reality. The CEO needs a backup plan—one that is designed by looking at the company’s worst-case scenarios. This plan addresses questions such as: What if your industry experiences a slump? What if new governmental regulations affect your business? What if you lose the client that accounts for 50 percent of your sales?
In some industries, the basis of competition can remain unchanged for decades, and leaders who stick to their strategy through downturns as well as upturns and ignore surface noise do very well. It is precisely when long-held assumptions about an industry are challenged that strategic changes happen. And you will need to make those changes very quickly. Thinking about strategy as a long-term commitment can blind you to that need.
To break out of competition-based industries, companies must break out of the accepted boundaries that define how they compete. Instead of looking within these boundaries, managers need to look systematically across them to create blue oceans. They need to look across alternative industries, across strategic groups, across buyer groups, across complementary product and service offerings, across the functional-emotional orientation of an industry, and even across time.

Managing Up And Across

By creating a business strategy a company can create a competitive advantage and ultimately understand more about themselves and where they are going.
Organisations must discern where and when technology can be deployed to facilitate the effective use of information. Senior managers, who are not IT specialists, should decide which IT investments and applications are appropriate and when IT investments will not necessarily lead to improvements in information management or produce better results. Business leaders must develop the ability to balance the opportunities, risks and investments in technology with their people’s ability to use information to add value and improve performance.
Implementing a business plan and a game plan takes hard work. It takes wisdom, discipline, courage, an eye for detail, and, most of all, persistence. It also requires an outward focus and an inward focus. You must set goals, communicate them, review them, monitor their realization, and stick to them when other people might abandon them.
Business plans do not include implementation instructions, because the writers of business plans focus on accomplishment. They write as if once you dream the dream, it magically becomes reality. They don’t write about the hard part—that is, the work it takes to gain success.

Comments

Моят процес на обучение е само на око - изобщо не е научен.

Grazie mille per il tuo duro lavoro. Ottimo post.

Ik hou van het idee van dit onderwerp, dat zelf ook uit een lagere middenklasse-achtergrond komt.

私はこの記事が好きです。

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Bài viết tuyệt vời, cảm ơn vì đã chia sẻ bài viết này. Tôi thực sự được thúc đẩy bởi bạn cho việc viết blog.

Jeg forsøger altid at prøve at bevare en holdning om, at jeg ikke ved, hvad jeg laver.

इस अनुकरणीय कहानी को साझा करने के लिए धन्यवाद।

Vertel iedereen over deze inhoud.

Blogisi on mukana maailman kanssa, mutta samalla sillä on tietty autonomia. Tätä autonomiaa ei voida selittää perinteisellä logiikalla, koska työn mielenkiintoisimmat osat ovat sanattomia.

Fantastisk lesning i denne bloggen.

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Az igazi írást az alkotó művészben ellenállhatatlan késztetés jellemzi. Benned van ez a késztetés.

Acabei de ler este blog e ele me surpreendeu.

Valahányszor számolom az áldásaimat, egyre hálásabb vagyok, mert az élet jó dolgai felülmúlják azokat a nem túl kellemes dolgokat, amelyek az életemben történnek.

Este o glumă să crezi că oricine este un singur lucru. Cu toții suntem niște creaturi atât de complexe.

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Mengalami kesedihan dan kemarahan dapat membuat Anda merasa lebih kreatif, dan dengan menjadi kreatif, Anda dapat mengatasi rasa sakit atau kenegatifan Anda. Cobalah marah sebelum menulis artikel Anda berikutnya.

Inspirant et édifiant, merci beaucoup.

Dünya senin gibi, her zaman başkaları için orada olan birine sahip olduğu için şanslı.

坚持愤怒，怨恨和伤害只会让你肌肉紧张，头痛和咬紧牙关的下巴酸痛。宽恕让你找回生活中的欢笑和轻松。

Bez obzira kakav bio nečiji stav prema ovoj temi, način na koji ste se nosili s njom me podigao.

Siempre prefiero leer contenido de calidad y esto es lo que encontré en tu publicación.

Bilgi toplumunda yazarlar için teknolojik hususlar büyük önem taşımaktadır.

När du förlorar allt blir du deprimerad om du inte tar ett steg tillbaka och börjar uppskatta det du har.

Prijatelji su mi veoma važni, a oduvek sam ih imao mnogo. Vjerovatno postoji mnogo razloga zašto je to tako, ali dva mi se čine validnijim od bilo kojeg drugog. Ja sam prirodno prijateljska osoba i mrzim biti sam.

Yaşlanmanın güzel yanlarından biri de artık çok sık korkmayacak kadar çok deneyimlemiş olmam. Bunu sevdim.

Sono spesso chiamato un modernista vecchio stile. Ma i modernisti avevano l'idea assurda che la scrittura potesse guarire il mondo. È impossibile.

Ovaj blog post nije ono što vidite vi, već ono što činite drugima da vide.

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Скоростта на промяната ви кара да се чудите какво ще стане със света.

Noget jeg ikke gør nok af, er at kommentere på det samme emne, som jeg lige har skrevet om baseret på min egen personlige erfaring.

Man patika lasīt iepriekš minēto rakstu, tas tiešām viss ir detalizēti izskaidrots.

Fantastisk læsning i dette indhold.

Меня часто называют старомодным модернистом. Но у модернистов была абсурдная идея, что письмо может исцелить мир. Это невозможно.

Ek wil nie interessant wees nie. Ek wil goed wees.

Il miglior soggetto di sempre!

Obično nikad ne komentarišem blogove, ali tvoj članak je toliko uvjerljiv da se jednostavno ne mogu zaustaviti.

No hay prejuicio que temas como estos no superen finalmente.

Jeg ser frem til å lese mange artikler fra deg.

Niezależnie od tego, jakie masz nastawienie do tego tematu, sposób, w jaki sobie z tym poradziłeś, jest dla mnie podnoszący na duchu.

Sua escrita é um presente.

Jeg har surfet på nettet i mer enn 3 timer i dag, men jeg har aldri funnet noen fantastisk artikkel som din. Det er forlokkende verdt for meg.

ชื่นชมมากสำหรับเรื่องนี้ช่วยฉันจริงๆ

आप पहली बार में महसूस नहीं करते हैं कि आप ज्यादातर एक सूचक हैं, जो अंश और लिंक के लिए लघु लीड-इन्स की आपूर्ति करते हैं।

Saya berpikir tentang bagaimana kita perlu membuat anak-anak merasa bahwa ada saat-saat dalam hidup mereka ketika mereka perlu menyendiri dan tenang dan untuk dapat menerima kesendirian mereka.

Bez vas, koji imate puno više vremena za čitanje od mene, bio bih beznadno iza krivulje.

Diese Artikel waren bemerkenswert.

Questo articolo è meraviglioso. Mi piace. Grazie per la condivisione.

I so enjoyed reading this content.

놀라운 기사입니다. 이 지식을 공유해 주셔서 감사합니다.

Тази тема е толкова субективна и хората могат да реагират както си искат.

Formålet med denne blog bør være at vaske dagligdagens støv af vores sjæle.

Anh nói trúng phóc. Xin vui lòng gửi cho tôi nhiều hơn để đến- Cảm ơn

난 그냥 싫어. 그리고 내가 다른 사람들의 인정을 받기 위해 이 블로그에서 입장을 취하는 것이 싫습니다.

你当然可以在你写的作品中看到你的热情。

Cảm ơn bạn đã giúp tôi hiểu điều này.

มีหลักฐานทางวิทยาศาสตร์ว่าการทำงานหลายอย่างพร้อมกันเป็นเรื่องยากมากสำหรับใครบางคน และบางครั้งก็เป็นไปไม่ได้

हमें इतनी अच्छी जानकारी देने के लिए धन्यवाद।

Няма по-важно решение в живота от това, което четете.

Äänenvoimakkuus riippuu nimenomaan siitä, onko kirjoittaja voinut istua huoneessa joka päivä, vuodesta toiseen, yksin.

Блогът беше извън този свят.

Leuk artikel, je hebt mijn dag goed gemaakt door een geweldig artikel te delen. Ik zou hier graag weer willen zijn.

J'aime les choses un peu éclectiques, quand une chose ne va pas avec une autre. C'est pourquoi j'aime votre blog.

Благодарен съм, че споделихте това парче с нас. Очаквам с нетърпение да прочета следващата част.

Bạn không thể đi bộ một mình. Nhiều người đã ảo tưởng, nhưng không ai thực sự bước đi một mình. Con người không được tạo ra theo cách đó. Mỗi người đàn ông đều nằm trong con người của mình, lịch sử của họ, văn hóa của họ và các giá trị của họ.

自分の中に「書けない」という声が聞こえたら、ぜひ書いてください。そうすれば、その声は沈黙します。

Jeg elsker det gamle ordsprog....Når eleven er klar, dukker læreren op. Tak skal du have.

Estoy en deuda para siempre. Este post ha cambiado mi punto de vista.

Molto apprezzato per questo argomento mi ha davvero aiutato.

Ausgezeichnete und sehr spannende Seite. Liebe es zuzusehen. Weiter rocken.

놀라운 기사, 나는 모든 사람에게 한 번 보도록 말할 것입니다.

政治是一门寻找麻烦、到处找麻烦、错误诊断和采取错误补救措施的艺术。

I kdybych měl stát sám, nebudu se bát stát sám. Budu za tebe bojovat. Budu bojovat za to, co je správné. Budu bojovat, abych pohnal lidi k odpovědnosti.

あなたなしで私が何をするかわかりません、そして私が決して知る必要がないことを願っています！

Tulisan serius di konten ini.

혼자 일할 때는 어느 정도 사회화해야 합니다.

Vertelde me vrienden om naar dit onderwerp te kijken, het was zo inspirerend.

Super vedetă care scrie în acest articol.

Копаене на това съдържание.

Vos articles de blog sont une magie portable unique.

Тема была не от мира сего.

A képernyő egy mágikus médium. Olyan ereje van, hogy képes megőrizni az érdeklődést, mivel olyan érzelmeket és hangulatokat közvetít, amelyeket egyetlen más művészeti forma sem tud megbirkózni.

Liels paldies par rakstu.

Dzięki za przeprowadzenie badań i opowiedzenie ich tak, jak to jest w rzeczywistości.

私はリーダーになろうとしました。私は本当にトーンを設定しようとしました。

Heerlijk leesvoer in deze blog.

Nincs konkrét lépésem, mert nem minden alkalommal ugyanúgy kezdem. De van egy tudás, mikor elég, és békén hagyhatod.

Grazie per i tuoi pensieri su questo argomento.

Myślę, że zastanawianie się nad takimi tematami jest poważnym problemem. Dziękujemy za zwrócenie nam na to uwagi.

Dengar, apa pun blog Anda lebih baik. Itulah sikap yang harus Anda miliki.

Môre behoort aan diegene wat vandag daarvoor voorberei. En jy het my gehelp om dit te doen.

¿No es grandioso haber llegado donde estamos y saber que aún no hemos terminado?

이 내용을 읽고 나면 꿈이 이루어집니다.

Hvis verden hadde flere mennesker som deg, ville det vært et bedre sted. Du gjør en forskjell.

Opreg, ek waardeer die moeite wat jy doen om jou kennis te deel.

Tätä ei olisi voinut ennakoida millään loogisella prosessilla.

글쓰기는 당신의 성격의 한없이 미세한 부분입니다.

Mein Lernprozess erfolgt allein durch das Auge – es ist überhaupt nicht wissenschaftlich.

Bu konuya doyamadım.

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