Business Strategy Fundamentals

Business Strategy Fundamentals 2009 Business Strategy Fundamentals Table of Contents Evaluating the Present Business Structure ...................................................................................... 1 Developing the SWOT ................................................................................................................ 1 Strengths and Weaknesses ...................................................................................................... 1 The Business Benchmark ........................................................................................................ 1 The Objectives ........................................................................................................................ 2 The Strategies.......................................................................................................................... 2 The Goals ................................................................................................................................ 2 The Programs .......................................................................................................................... 2 Evaluation of the Business Goal ..................................................................................................... 3 What is the Present Strategy of Business?................................................................................... 3 What are the Fundamental Strategies? ........................................................................................ 3 SWOT for Future Strategies ........................................................................................................... 4 Future Projections for Fair Market Value & Cash Flow................................................................. 4 Where do you want the business to be in 5, 10, 15, even 20 years from now? ........................... 4 Plans for Exiting the Business ........................................................................................................ 6 Who will the business be sold to? ............................................................................................... 6 Exit Strategies .............................................................................................................................. 6 Expense & Reimbursement Policies ............................................................................................... 7 Summary ....................................................................................................................................... 11 Business Strategy Fundamentals Evaluating the Present Business Structure The SWOT analysis is a major part of developing your strategy, so it has to be effective. When developed properly, the SWOT (strengths, weaknesses, opportunities & threats) model will make sure that everything happens as it should and that nothing is left out. It will also create the capability for any follow up activities that may become necessary. If the strategy involves significant growth, it is important to fast forward and take a look at the SWOT’s as they would appear in the futuristic years. You do this to ensure that the strategies are motivated and vigorous, and in anticipation of any issues that may emerge. Developing the SWOT Concisely list the most important strengths (S), weaknesses (W), opportunities (O) & threats (T) that are happening presently. S & Ws are internal to the business and O & Ts are external. All SWOTs are one-sided, for example, something is either an S or a W; it but cannot be both. Enter up to six items under each heading. Str e n gths an d Weak n esses Strengths and weaknesses are relative to the internal functioning of the organization. They include the issues surrounding resources, programs and organization in the major areas. They would include: Costs Productivity Purchasing Finances Resources Performance Management Operations Systems Expertise Resources Efficiency Capacity Processes Products Services Quality Pricing Features Range Competitiveness R&D Effort Direction Resources Sales Marketing Distribution Promotion Support Systems Organization Structure The B usin ess B en chm ar k Benchmarking is a management tool th