Components of a Business Strategy :- Leading companies have a business strategy based on four essential fundamentals: Values, Mission, Vision and Value Proposition for the customer, all of them with solid foundations. However, it is surprising how companies today do not take these pillars into account when realizing a business strategy that are essential for corporate growth.
Components of a Business Strategy
According to the experts there are four basic components of a business strategy that you will know below for your business to grow:
- Business Values
These define and represent the way things have to be done and, therefore, form the basis of the strategic objectives. The actions and decisions of an organization must be aligned with its established Core Business Values.
- Business Mission
The business mission defines as what the business is all about and where we want to reach in future? The duty of a business mission goes beyond communicating only the purpose of the organization but also aligns with its core business values. An organization that has its business mission aligned with its core business values is setting the stage for the development of a more coherent business plan.
- Business Vision
It is built on its corporate values and is an extension of corporate vision. It should include a clear time frame (usually a horizon of three to five years) and act as a signal on the way to achieve business mission. It is a clear and measurable picture of what the company wants to achieve towards the future. As a result, the business vision provides a tangible way to assess your strategic advancements over a specific time period.
- Value Proposition
A value proposition is the set of benefits that will be given to the client. In other words, it is the great promise by which the customers of an organization recognize it in front of their competitors. The key to the success of a value proposition is to know the target customer and the competitors’ proposals, so that they can differentiate themselves.
There are three classic value propositions, which vary slightly according to the business sector. But they usually revolve around the same three ideas:
- Operational excellence (offering products and services at a lower price)
- Product or service leadership (continually update products and services to stay on the cutting edge)
- Personalization (customization of products and services to satisfy the unique needs of each client)
Every organization must have a business strategy that includes the four basic components mentioned above so that it can be successful.
Skills a Good Negotiator Should Bring
Negotiating is one of the best ways to solve problems or conflicts. A good business negotiation goes beyond getting a discount or a cheaper price. To be a good negotiator you must have knowledge and experience over time, there is no other way to achieve it. Learning from other experts is important, however small the teaching has significant value. In this way you will gather skills that will increase your self-esteem and confidence. According to a study, these skills are:
- Active listening
Spends 80% of the time of the negotiation listening to the other and uses the questions properly. This allows you to have lots of information from the other party and make little of yourself known.
Those who are rigid in their approaches do not know how to negotiate. You need to give in sometime. It is the quality of knowing how to adapt before the situations that are presented in the negotiation or before the needs of the other party
The ability to put yourself in the shoes of others: – We must know how to listen and understand. Do not confuse the problem with people, with these, you have to be understanding.
Before the attacks of the other parties, we should not lose control: – A negotiator, who loses his nerves, has to lose, because he will lose perspective.
They understand negotiation as a process of tactics and tricks. Plan the entire negotiation process from the most important part, the preparation, to the follow-up of the agreement. Remember that negotiation is present in our lives, not only in the workplace, but reaches our personal life on a daily basis. As the former US president said. John F. Kennedy, “never negotiate from fear, nor fear negotiation”
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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