A Corporate Strategy Blog To Learn About Profitable Strategiesby Inter Bizconsulting InterBiz Consulting Group
How did you come up with a corporate strategy blog?
I gave birth to this blog to talk about business strategy and business strategy, but not like everyone else who says things at random, here is a constraint:
Discuss only Profit-producing Strategies.
If you are interested in understanding how to build and implement a business strategy then you have come to the right place.
Otherwise I'm sorry to tell you, you're wasting your time here.
Great, let's continue with a definition.
What is a Strategy ? It is a medium or long term action plan used to set and subsequently coordinate actions aimed at achieving the predetermined purpose. In our case, the goal is only one: business profits .
Why the desire to specify?
I'll tell you right away.
I guess you will have happened to talk to important managers ... wait ... wait, here let's first agree on calling things the same way.
Then with the word Manager I describe, in similitude with the Anglo-Saxon world, all the management figures, such as CEO, Executives, Directors, etc. that is those people within a company who have operational responsibilities and spending power (at least in theory ...). I know that in Italy the word manager is not denied to anyone, but here we talk about those specific people.
Come on let's move on.
So, I was asking you if you happened to talk to important managers or important management consulting companies and hear about the " Vision ".
Because the Vision is an image, a dream, which has no connection with the reality of the business. It lacks all the applicability and business requirements.
The mere use of the word is misleading. I'll explain it to you in a little while. Now let's get back to business strategy.
In order for a strategy to make sense, there must be an important feature: its applicability .
As the definition itself says, if you work on the strategy you have to prepare the subsequent actions (including all its implications) necessary to reach those profit goals that you have set for yourself.
And what would these implications be?
I get there immediately.
Find out how to make a strategy applicable, that's why this business strategy blog
The fundamental components are:
Both must be understood and modeled to achieve their goals. And in this blog I'm talking about how to build a strategy and how it should be developed by marketing and management.
Let's talk a minute about the type of goals your strategy should have.
Without too many concepts, here the only objective that makes sense is only one: business profits .
I repeat it because it is precisely on this aspect that most managers make mistakes.
If you agree too, continue to follow me, now I go even deeper with the speech.
You will have noticed so far that we are NOT explicitly talking about turnover . Do you know why? Because this is an ephemeral goal!
Often with this word we tend to explain a business strategy.
But it's wrong.
Following the chimera of the increase in turnover there are often many strategic errors that lead to a reduction in contrast (but I have also seen cases where it is more correct to speak of "cancellation" or "destruction") of profits, as well as the positioning of the company. on the market. As a result of its vitality and ability to act and react. Real disasters.
In fact, our economic system is based on growth. But behind the word " growth " lies a trap.
Do we talk about revenue growth or profit growth?
Few care about this aspect when it comes to corporate strategy.
Both aspects (turnover and profits) of growth could express the same thing.
Now no longer, the only concept that matters is profits, margin, profits.
Unfortunately, sales and margins were confused in the past. This until the market news that everyone calls has intervened :
That in practice means " competition " has arrived .
Until recently, we all believed that customers would always come alone, that banks would always provide credit and that you could always impose the margin you wanted on your products and services.
Then the world has changed.
You have surely noticed that now the competition is in every sector. A ruthless competition willing to offer exactly what you offer (maybe even better) but at a lower price.
It is so!
And what happened to the business strategy?
corporate strategy blogMany believe that the " growth in turnover " is the magic balm for their problems, they set up any possible action that could lead to an increase in sales and therefore in turnover (by making discounts and reducing margins). Too bad then that without a plan to translate these techniques into a consequent development of profits, we only get the effect of reducing profits .
Do you want me to give you some examples?
Let's try to think of strategies that are more fashionable:
Launch of new products
Acquisitions and mergers with other companies
Entry into new markets (those that are most in vogue)
Investments in marketing and advertising to increase sales
Production transfers abroad
Well, what do you think?
Keep in mind that these strategies that I have listed to you and that they are all doing, unfortunately, in the end, turn out to be wrong.
I know you're thinking "but if everybody does that, will there be a reason?"
Let me tell you.
Everything stems from the fact that many managers (or management consultants) have no idea what to do and copy each other. This management is not in bad faith, on the contrary, it does its best to try to collaborate for the development of the Company.
Unfortunately he happens to make mistakes ... "directional".
We are talking of the obvious of course, after all if it were not so there would be only companies able to produce useful "rain". Instead we see that the reality of companies is different.
Let's go and look into it even better.
Think of the business management landscape. Have you ever considered managers (perhaps famous) among the best for their business strategies? And ... then instead going to discover that their own decisions have led to bad results in the medium and long term in terms of sales, orders, profits and financial stability?
What does it mean?
It means that more and more companies, often unconsciously (sometimes even speculatively, but that's another story) because of their managers are slowly and inexorably wearing down their market position.
You know the typical justification:
Well, this is a typical example of management's inability to decipher the overall context of its business and its customers.
This is why this business strategy blog is born.
To try to convey that you can no longer work and do business as you did before.
Created on Jun 15th 2019 11:00. Viewed 888 times.