A well-planned strategy is the formula to achieve a competitive advantage, before the competitors and a high financial benefit. To achieve a good strategy it is necessary to carry it out with originality according to the objectives set by the company, it has to be logical and very aggressive.
elaboration-and-execution-of-strategies-presentationAmong all the managers do, nothing affects the final success or failure of a company more than the expertise with which they plan their course, carry out strategic movements and competitively effective commercial approaches and do what is necessary internally to produce a good daily execution of the company. strategy and operational excellence.
If a good strategy is carried out and an excellent execution become symptoms of a magnificent administration.
Conclusions.
It is of great importance to develop adequate and realistic strategies for the situation of the company, to generate real value, which allows growth and stability in the short and long term, with this we will be competitive and the attacks of competition will not cause great structural damage to our organization.
PHASES FOR THE ELABORATION AND IMPLEMENTATION OF A STRATEGY.
Introduction.
The five phases for the elaboration and execution of a strategy are the steps to follow, so that the strategy works correctly.
They are our guide, which will allow us to make the necessary adjustments so that we do not lose sight of our objectives and goals. In order to achieve significant progress in the commercial positioning of our organization
Develop a vision, strategy, mission and values.
A strategic vision is a tool to give the organization a sense of direction, to clearly communicate the path that will be taken in the future and each member will participate in the stated objectives.
Determining a clear strategic vision will help an organization:
- Clarify and unify the views of an organization's long-term managers. Avoid making unfounded decisions. It is a tool that encourages employees to take the course we should take in the face of adversity. It helps the organization face the future.
The mission statement describes the purpose of the company's current business.
"Who we are, what we do and why we are here."
It is important that the organization's mission statement is descriptive.
And with this we will achieve:
- Identify the products or services of the company. Know the needs of the clients that we intend to satisfy. Identify the groups of clients or markets that you want to serve. Specify your approach to please the clients. Create your own identity.
The values.
They are the beliefs, rules of conduct and characteristics that determine an organization, to guide the fulfillment of the vision and mission.
ESTABLISHMENT OF TARGETS.
Objectives are performance goals of an organization; are the results and products that the administration wants to achieve.
Two types are required:
The financial objectives communicate the goals of the administration in the financial field.
The strategic objectives refer to the market position and commercial stability of the company.
Finding good results in our strategic objectives can consolidate benefits in financial objectives. Or else it is necessary to balance both objectives to find solid results.
Short and long term objectives.
Short-term goals direct attention to performance improvements by meeting partner expectations.
Long-term goals force optimal performance and prevent the emergence of short-sighted administrative philosophies without real scope.
The objectives must be set for all levels of the organization and with this each functional area will contribute with its great effort to the achievement of the goals.
Formulation of a strategy.
In formulating a strategy; it is necessary to bring together a team from all the areas involved, all with the supervision of the direct decision-maker.
Hierarchy of strategy development of a company
Corporative strategy. Multiple business strategy: how to gain a competitive advantage from the management of a set of businesses.
Functional area strategies.
Include details of the mechanisms of the business strategy.
Provide a plan to manage a particular activity in a way that supports the business strategy.
Business strategy How to strengthen the market position and obtain a competitive advantage.
Actions to build competitive capabilities
Operational strategies in each business unit Add details and finishes to functional and business strategies Provide a plan to handle special activities of lesser rank with strategic importance
Strategic plan.
It expresses the future direction of the company, its business purpose, its performance goals and its strategy.
Exceptionally bold goals, effort goals that require resources that go far beyond the company's current means, which can be obsessive, become a strategic purpose.
Execution of the strategy.
It is the most time-consuming part of the strategy management process. Convert strategic plans into actions to direct organizational action, motivate staff, build and strengthen the company's competitive skills and competencies, create and foster a work environment that supports the strategy, and achieve or exceed performance goals. Initiatives to launch the strategy and execute it effectively must be launched and controlled from all areas where it will be applied.
To control the process of executing the strategy it is necessary to have the following aspects.
- Recruit staff with the necessary skills and experience Build and strengthen competencies and competitive capabilities that support the strategy Assign extensive resources to critical activities to achieve strategic success Install operational and information systems that enable staff to carry out their duties efficiently and effectively Motivate staff and link rewards and incentives directly to the achievement of performance objectives Create a culture and work climate in the company conducive to the successful execution of the strategy
Performance evaluation and initiation of corrective adjustments.
The board of directors has an obligation to carry out a comprehensive supervision and to make sure that the tasks are applied in a beneficial way for the shareholders and interested parties.
The board of directors must consider these four obligations.
Be critical, inquisitive and monitor the direction, strategy and business approaches of the company. Board members should ask pertinent questions and draw on their business vision to independently judge whether the strategy proposals were well analyzed and whether the proposed strategic actions promise more than other options.
Assess the skills of executives in developing and executing a strategy. The board is responsible for determining whether the CEO is doing good strategic leadership work.
The board of directors is responsible for reviewing that the financial statements accurately and truthfully reflect the results of operations.
Conclusions.
The phases will help to define a strategy according to what is estimated by the company in order to create financial and commercial growth for partners, collaborators and suppliers.
Providing greater stability in the market and extensive profitability to the business, making them the leaders in their sector.
It is very important to take into account the vision, mission and values of the company to adapt the best strategy that makes us stand out from our current and future competitors.
BIBLIOGRAPHICAL SOURCES.
- Thompson, AA, MA, & Gamble, JE (2012). STRATEGIC MANAGEMENT. New York, NY, USA: The McGraw-Hill Companies, Inc.
