Hank Rhon: Strategy and Business Planning

An important factor for any business is to come up with a strategy for business, that is an overall plan of action of how the business will work within the given industry and how it will reach the people it needs to reach, explains Carlos Hank Rhon. Strategy is basically the direction and the scope an organization will take over a long term period. From time to time you may also need to rework your business strategy. The basics of a strategy for business is thus:

•     Direction – where the business is trying to get to in the long term
•     Scope – which markets should the business compete in and what are the activities within this market
•     Advantage – how the business can perform better than the competition
•     Resources – what skills, assets, relationships, technical abilities, etc are required for the business to compete such as effective business leadership
•     Environment – what is the external environment that could affect the business’ ability to compete
•     Stakeholders – what are the expectations of the people in power and business leaders in and around the business

These types of strategies can take place at different levels of the business’ life cycle, from the overall business itself to that of the people working in and around the business, explains Hank Rhon. Within these overall strategies are smaller strategies that go along with helping the business to achieve its goals; strategic analysis for example is all about analyzing the business’ strengths in terms of position and how factors can affect this position. Implementing a global business strategy is also important if you plan on going global with your products and services. Visit the Business Planning Website for more information.

The most difficult part of a strategy for business is the implementation, especially when dealing with an established business. Often times, people are unwilling and afraid of the changes that can come from the overall analysis.