NILESH WAGHELA Business Strategy
UNDERSTANDING STRATEGY
Understanding Strategy Many business leaders lack an understanding of how to craft strategy. They know its importance to decision-making and understand how it helps in shaping business operations, but when it comes to creating one, they struggle. While it’s not an uncommon situation, it’s one that business advisors use to teach business leaders about the intricacies of a strategy and how to come up with one.
2
The mission describes what the company wants to achieve, while the vision statement captures why the people in an organisation should be motivated to accomplish its goals.
A
solid strategy provides a roadmap for the business by defining the guiding rules or principles that determine the actions and priorities the business should consider. It’s vital to note that a strategy is just one aspect that defines the direction an organisation takes; it is separate from the mission and vision statements, and the value network that a business creates within its environment.
MISSION, VISION AND VALUE NETWORK The mission describes what the company wants to achieve, while the vision statement captures why the people in an organisation should be motivated to accomplish its goals. The value network describes the various parties with whom value creation and capturing happens, while the strategy defines the resource allocation (or action plan) that accomplishes the mission. By giving thought to all four elements, a business can master the art of developing a strategy.
3
To learn more about this topic, visit the blog of Nilesh Waghela.