Decision Matrix Analysis is particularly helpful for bringing together financial and non-financial decision criteria. Assisting With Strategic Planning Development departments often have high-level directors or vice presidents who work with strategic planning executives to develop key marketing strategies to grow the business.
The statistics are grim. This growth strategy would involve buying a competing business or businesses. Fortunately, it developed a wildly-successful series of four-wheel all-terrain vehicles, opening up an entirely new market. How can you monitor or adapt to these external factors?
Each stage builds on the previous stages; that is, a stage 4 organization completes activities in all four categories. The rub is that sometimes, the market forces you to take action as a means of self-preservation, as it did with Polaris.
Operational Strategies While functional strategies incorporate broad ideas, operational strategies are much narrower. Identifying New Market Segments Development departments are charged with finding and identifying new market segments. For example, Express Personnel now called Express Employment Professionalsa staffing business that began in Oklahoma City quickly opened offices around the country via a franchising model.
Countering Competitive Strategies The development department in a small company often studies the competition, analyzing their strengths and weaknesses and suggesting strategies to counter the aggressive marketing of these competitors.
This is how your strategy becomes reality. Best Practices A good way to test business planning is to implement a management best practice such as the balanced scorecard.
The development manager would then decide whether to cut prices or maintain its higher prices, perhaps believing the company's high-quality products justify the higher prices. In most cases, the account manager is a different person than the biz dev person who did the deal.
These include ensuring there are sufficient resources, assigning responsibilities and establishing a chain of command.
There Are No Legal Issues A legal agreement codifies a business arrangement and includes commercial terms as well as what happens if things do not work out.
What are your personal strengths, weaknesses, opportunities or threats, and what are your "core competencies"? If you choose to follow one of the Intensive Growth Strategies, you should ideally take only one step up the ladder at a time, since each step brings risk, uncertainty, and effort.
By Eric Grafstrom A variety of strategic planning tools described in the section below may be completed as part of strategic planning activities.
Find what works for you and if you realize that what you are doing is not working, switch things up until you find a new business strategy that is right for your organization. What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more new customers to the computers Apple offered.
Once agreed upon, this topic should be developed to conclusion. These workers often use market research to enhance their analysis. Clarify Your Strategy Your strategy needs to be understood by people at all levels of your organization, not just in the boardroom.
How close they are to the strategic goals and vision will determine the success or failure of the strategic plan. When Apple added its retail division, it was also adopting an Alternative Channel strategy. Then, after several mild winters, the company was in dire straits. Development departments in the restaurant industry, for instance, sometimes recommend co-branding strategies with other restaurants.
Bringing in the right business development person at the right stage, and following these other guidelines, will keep your company on the right track. Which of these should you consider? If you are not ready to allocate the resources to support a deal, think twice before signing it.
Post-Deal Management Is Crucial All successful deals are a result of accountability and proactive management — by both biz dev and account management. Functional strategies may include marketing, human resources, new product lines as well as legal and financial strategies.
As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies. In other words, most businesses start small and stay there. Finding new ways for your customers to use your product—like turning baking soda into a deodorizer for your refrigerator—is another form of market penetration.
Many companies have been weighed down by a bad deal they later regretted -— this is where you want to develop a level of understanding and trust with your business development person.
After gathering data from early deals and validating a path to achieve your goals, business development is ready to start replicating deals and putting a support structure in place.
This means that each measure, objective, data source and initiative must have an owner. Development department managers may also determine ways to save their marketing departments money, such as outsourcing their advertising functions.Fundamentally, at this point you have moved from planning the strategy to planning the operations; from strategic planning to annual planning.
That said, the only way strategy gets executed is to align resources and actions from the bottom to the top to drive your vision. Developing Your Strategy.
Professional sports teams know this, and this idea applies to your organization, your department, your team – and even to yourself as an individual.
systematic approach to strategy development. How Do You Write a Business Strategy? In a for-profit company, for which competition and profitability are important. The corporate-strategy function summarizes the results, adds appropriate corporate targets, and shares them with the organization in the form of a strategy memo, which serves as the basis for more detailed strategic planning at the division and business-unit levels.
Developing a department business plan, with input from your organization, allows you to understand and communicate the HR functions contributions. It allows you to shape the expectations that your organization holds for what you will contribute and when.
For further information on business planning issues, refer to other papers in this series which cover business ideas, business strategies, financial planning, cashflow forecasting and business planning. The least risky growth strategy for any business is to simply sell more of its current product to its current customers—a strategy perfected by large consumer goods companies, says McFarland.Download