Business failure is tied most directly to little to no strategic thinking and strategic management. The top reasons that business fail include:
Following a strategic process is not enough. Doing it well is vital to success.
There is not one right or even one best strategic planning model. In fact, every organization may want to have their own model that best fits its own personality. However, there are lessons learned and best practices that we should be familiar as we determine the best model for an organization.
Let us start by looking at a generic strategic planning process - see below. We'll describe briefly what the different steps mean - so that you have a basic framework for looking at the pros and cons of alternatives. Some of these models apply to business, some to business and non-profits, and others can be applied to all organizations.
Let's start by looking at a generic strategic planning process - see below. We'll describe briefly what the different steps mean - so that you have a basic framework for looking at the pros and cons of alternatives. Some of these models apply to business, some to business and non-profits, and others can be applied to all organizations.
Customers are at the top of the list for a reason. Customer analysis helps you to understand in depth what it takes to win the loyalty of your existing customers or your target customers. By nature we are too optimistic about what it takes for customers to actually pull out the credit card and make a purchase. The challenge does not stop here. The next question is how do you provide such value that the customer becomes excited about what you do, becomes loyal, and naturally becomes a strong advocate for products and/or services.
Competitive analysis is an assessment of the strengths and weaknesses of your present and potential competitors. Most firms do not conduct competitor analysis thoroughly and systematically enough. Most make decisions based on assumptions, impressions, guesses, and intuition based on partial information. This type of analysis leads to costly failures.
Market analysis helps you to assess the opportunities that exist within a market and to understand realistically the strengths and weaknesses of your organization to succeed within the market. Market analysis includes looking at the size of the market, trends, growth opportunities, costs, profitability, and distribution channels.
Conduct a PESTEL analysis:
The purpose of trend analysis is to try and guess the future, as it relates to your organization, so that you appropriate invest and optimize your efforts to meet customer needs now and in the future. Developing new trends is admirable and difficult. Apple is a trend setter but understands and intelligently builds upon general trends. Understanding and moving with trends improves the probability of success.
The first step is in trend analysis is to identify which factors are potentially most relevant and impactful to your organization. Trend analysis involves collecting information and attempting to spot a pattern in the information. Trend analysis often is focused on business, technology, economic, demographic and social patterns. Trends analysis is used identify opportunities as well as to see potential problems.
Summaries from Future Prediction Reports
To access the National Intelligence Council future trends report visit - click here.
Objectively identify what your strengths and weakness are. In determining your strengths, use Jim Collins' sweat-spot model. Ask yourself the following questions:
Those products and services that best meet your value proposition and that align with your competencies
Below is a comprehensive strategic planning model that built into it best practices.