Small and mid-sized companies need to think strategically
The lack of strategic planning inthe smaller sized companies can often be attributed to a lack of time andunderstanding. Owners and company executives tend to become absorbed with thedaily operations of the company; focusing on the immediate and not thelong-term. Contrarily, some company owners may recognize the importance of strategicplanning yet are hindered by a lack of understanding of the processes. Althoughvast volumes of books have been written on the subject of strategic planning,many address the needs of a large corporate entity and speak of complexitiesthat are not applicable to the smaller organization.
Strategic planning does notnecessarily need to be a complicated process involving elaborate planningtools. In its simplest structure it can be described as the development of along-term company positioning based on that which provides value to customersand shareholders. It requires knowledge of the fundamental industry shifts andhow customers and competitors are responding to those changes. Flexibility isan inherent characteristic, required for continuous change and adaptation.Evaluating strategic options is based on identifying those choices that aremost capable of providing value for all stakeholders and aligns with theorganizations’ vision and core competencies.
Therefore, the best place tostart is to develop an awareness of the fundamental changes occurring withinthe industry and begin to align those changes with the organizations’ corecompetencies. To this end, answering the following three questions can provideany sized organization with a starting point.
(1) What Business are we in?
(2) What changes are occurring in the industry?
(3) How do we make money?
Wow, I never knew that Small and mid-sized companies need to think strategically. That’s pretty interesting...
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Yes, if they do not think strategically they will not be able to survive the difficulties of this economic downturn. If you would like further thoughts on the subject matter visit www.businesssimplyput.com "free resources" on the front page. You will find an article addressing this topic.
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