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Can you say what your strategy is? - Coggle Diagram
Can you say what your strategy is?
Elements of a strategy statement
Any strategy statement must begin with a definition of the ends that the strategy is designed to achive.
The definition of the objective should include not only an end point but also a time frame for reaching it.
It is also crucial to define a scope or domain of the business.
Defining the objectives, scope and advantage requires trade-offs.
Defining the advantage
Given that a sustainable competitive advantage is the essence of strategy, advantage is the most critical aspect of a strategy statement.
Consists of two parts: A statement of the customer value proposition, A capturing of the unique activities or the complex combination of activities allowing the firm alone to deliver the customer value proposition.
Defining the scope
Encompasses three dimensions: Customer or offering, Geographic location, vertical integration.
The scope of an enterprise does not prescribe exactly what should be done within the specified bounds. In fact, it encourages experimentation and initiative.
But to ensure that the borders are clear to al employees, the scope should specify where the firm or business will not go.
Defining the objective
The strategic objective should be specific, measurable, and time bound.
It should also be a single goal.
Developing a Strategy Statement
The first step is to create a great strategy.
The process of developing the strategy and then crafting its essence in a readly communicable manner should involve employees in all parts of the company and at all levels.
The wording of the strategy statement should be worked through in painstaking detail.
The end result should be a brief statement that reflects the three elements of an effective strategy
It should be accompanied by detailed annotations that elucidate the strategy's nuance.