WHAT'S YOUR STRATEGY?

In business, one is exposed to different levels of risk. It is like setting sail and embarking on a journey to the unknown, better yet going to war. Many a things can go wrong in a business even before it starts. Economic theories or postulations become definite only when some factors are in place. No wonder there is always the condition of “All things being equal” attached to those theories. So what can an entrepreneur do, especially when he or she does not have control over all the necessary and scarce resources needed to carry on? The answer is simple.

Strategy! Every entrepreneur needs strategy. In fact everybody needs it because our life actually depends on it.  Strategy can be defined as a plan of action or policy designed to achieve a major or overall aim. It could also be defined as the art of planning and directing overall military operations and movements in a war or battle. It is derived from the Greek word “STRATUS” (meaning army) and “AGO” (meaning leading or moving) in other words, strategy is about moving or leading an army. From the above definition, it is obvious that strategy focuses on identifying risks, oppositions, problems or barriers that could pose a threat to a desired goal or objective and the ability to alleviate or prevent them completely with the available resources. Someone once said that “if you can put the enemy in check, your victory is as good as being achieved”

In addition, strategy also helps in making planning and execution more efficient and effective. In other words it saves time and energy. Show me a man without a strategy and I’ll show you a completely hopeless person.

Strategy in business cannot be over emphasized. It gives a clear picture of a company’s goal or objective and how it will be achieved. It entails all about integrating organizational activities, utilizing and allocating the scarce resources within the organizational environment so as to meet the present and future objectives. It is the blueprint of decisions in an organization that shows its objectives and goals, plans for achieving these goals, and defines the business the company is to carry on, the type of economic and human organization it wants to be, and the contribution it plans to make to its shareholders, customers and society at large.

The process of defining a business strategy is known as a strategic planning. This process can be broadly divided into four stages, namely: environmental scanning, strategy formulation, strategy implementation and strategy evaluation. In this particular order, the management team scans and gathers as much relevant information as possible, analyze and select best alternatives from all options available, take decisions/actions according to plan and evaluate performances in other to make necessary adjustments.

There is no gainsaying that the success of a business is largely determined by how prepared in terms of planning, the promoters and managers are.

So, before you set out on that beautiful business idea of yours, stop, ponder and ask yourself, what’s my business strategy? It sure will save you a whole lot of pain.