Business Development · Business Strategy

Is strategy important for all size and type of business?

Penuel Ratnagrahi I can help you in web development projects, websites, and custom web applications.

August 7th, 2020

I understand strategy is important for a growth of business, but is it applicable for all type and size of businesses. Take for example a very small business like a motor garage, where all are just workers/mechanics and probably the owner himself too. Their day to day work is to fix & repair cars and that's their single job. In this setup how strategy works, at what level and who executes/implements the strategy? I hope I asked the question in the right way.

John Bilicki III Able to dramatically improve the entire landscape of the web with the right business connections.

August 7th, 2020

To not have a strategy is to not have a business.

To not have sales is to not have a business.

If you say you don't think about sales though you have sales then either you've got dumb luck (the most precarious position for a person running a business to be in) or you don't actively think about the sales process in that fashion.

Small businesses are still businesses and as a small business grows it's success will to some extent be dependent on how consciously aware of the business strategy involved.

If you're not concentrating on sales though another aspect such as fast service, reliable service, etc then it's effectively a proto-business. Once you actively have consciously focused on sales strategy and have had success your business has then evolved beyond the initial phase.

Dane Madsen Organizational and Operational Strategy Consultant

August 7th, 2020

Strategy is crucial to all businesses - however, it is often hidden in other tasks. For example, using your hypothetical, it is a strategy to have a motor garage (the owner's skills set) instead of a dentist's office. It is a strategy to have the ability to employ others, instead of the owner being the only employee. It is strategy determining how many and what skills, what the services cost, how the customers are acquired, and every other aspect of the business.

If what you are asking instead is, "is it important to have a formal process for strategy with a formal output document", then this is a different discussion. If this is the real question, the answer is that yes, it is important if you want long term success (however you define success). Not having one would be similar to driving cross-country without a map. You can do it, but it takes longer, has inordinate risk, and costs a lot more.

It is also important to understand that a strategy process and plan is a moving target; when you find a need to modify it, then do so. It is always fluid and needs to take into account the conditions that day and for the future (say, a global pandemic) that you could not have anticipated.

Raghu Ranjolkar Strategy & Marketing Consultant

Last updated on August 7th, 2020

At a micro view, the level of any individual company, strategic planning provides a company purpose and direction. How are you going to get somewhere if you don’t know where you are going? Everyone in an organization needs to know what you sell or do, who your target customers are, and how you compete. A good strategy will balance revenue and productivity initiatives. Without strategic planning, businesses simply drift, and are always reacting to the pressure of the day. Companies that don’t plan have exponentially higher rates of failure than those that plan and implement well.

Management, small and big, involves planning, organizing, staffing, leading and controlling to accomplish desired aims. Resourcing includes manipulation of human resources, financial resources, technological resources and natural resources. All the resources are limited in nature. Strategy is very important for all businesses due to the limitation of resources.

The word strategy has so many meanings itself and all these meanings are useful, important and relevant to the people who are setting strategy for their organizations and corporations.

Strategy is the formulating basic long term goals and objectives of an organization and the implementation of course of actions and the allocation of necessary resources for carrying out these goals.

the task of crafting a strategy entails answering a series of ‘hows’:

  • how to grow the business,
  • how to please the customers,
  • how to outcompete rivals,
  • how to respond to changing market conditions,
  • how to manage each functional piece of the business and develop needed competencies and capabilities and,
  • how to achieve strategic and financial objectives.