Defining the strategic business plan helps establish long-term direction, which enables informed and informed decisions on how to place resources, initiate projects, manage market challenges, and attract new funding opportunities.
In this article, let's look together at why planning corporate strategy can improve efficiency, prevent risk, and benefit internal organization. We will then add, an example to help you better understand the concepts and how to put them into practice.
Strategic business plan in 5 steps
The strategic plan is a key document for business management, as it establishes long-term goals and the strategies the company plans to use to achieve them. Current status, vision, mission, and long-term goals are defined and put down on paper here.
Specifically, within a strategic plan you will need to include:
- Analysis of the starting situation: Here we analyze the internal and external aspects that, on a daily basis, influence business performance. This section may include a'SWOT analysis within which the strengths, weaknesses, opportunities and threats facing the company are assessed;
- Vision, mission, values and goals: In this section, the philosophy of the company, its raison d'être, and the ethical principles that guide it are defined. These principles are joined by the company's KPIs, which are tangible and measurable strategic indicators, often expressed numerically, through which to finalize their goals.
- Strategic actions to achieve long-term goals: here, the strategies and actions that the company must take to achieve its goals are identified.
- Operational planning: Every action needs to be implemented by assigning responsibilities, setting deadlines, and allocating resources-this is the right section where to establish the necessary operational activities;
- Monitoring: How will the implementation of the strategic plan be monitored? This is the appropriate section to explicate all useful monitoring activities.
Business plan practical example
Here is a simple example that can help you understand how to compile a strategic plan.
Suppose you are the owner of a company that manufactures industrial machinery, your strategic plan might look like this:
Analysis of the internal and external environment
- Indoor environment: you have highly qualified staff and advanced production technology;
External environment: the company operates in a highly competitive market characterized by strong price pressure to which external factors such as regulatory changes and sensitive economic and social situations are added.
- Strengths: highly skilled personnel, advanced production technologies;
- Weaknesses: dependence on a small number of suppliers, limited market presence;
- Opportunity: possibility of expansion into niche markets;
- Threats: aggressive price competition, regulatory changes that increase production costs.
Mission, vision and corporate goals
- Mission: to produce and market high-quality furniture, offering service and support services to ensure customer satisfaction;
- Vision: to become the leading manufacturer of high-quality furniture in our target market, using advanced production technology and providing excellent customer service;
- Goals: increase sales by 15 percent within the next three years, acquire a 20 percent market share, and expand business through the opening of two new stores.
Business strategy examples
- Diversification: expanding the range of products offered to cover a wide range of customer needs and tastes;
- Consolidation: strengthen market presence through strategic partnerships with quality suppliers in order to offer customers high-quality products at competitive prices;
- Expansion: leveraging online presence and digital marketplace to reach new customers and increase market share.
- Implementation of new marketing tools;
- Expansion of product range, including the creation of specific lines;
- Acquisition of a new supplier that guarantees high quality materials at affordable prices;
- Opening of two new stores, in strategic locations.
Monitoring and control
- Regular quality tests will be conducted on products to ensure compliance with the required standards;
- Monitoring tools will be used to assess customer satisfaction and market trends.
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