Value Driven Strategy Development
To be successful, companies must establish their goals and value statements that address key avenues to where the firm plans on standing. If not properly executed, the key ingredient that underlines the direction a firm is headed may be easily missed. Strategies play a vital role in business and are important to understand as well as demonstrate in the form of a customer value.
The employees responsible for developing and executing such a strategy are the managers or leaders of the company. It is their job to formulate a customer value strategy that gains competitive advantage over their competition. A strategy is basically the goal or direction a given firm is headed always. The strategy elaborates on what competitive advantage it has over their competitors. If a company decides their product enhances quality of life, then that firm must demonstrate how it is going to win and where it stands in the market. According to Active Network Channel, “a company must ask themselves four questions before developing a strategy including what is changing in the market place? What position do you want to take? How am I going to win customer value? Lastly, why am I going to achieve extraordinary growth?” (Value Driven Strategy Development) Asking yourself these defining questions will help identify what is important to persist after.
Critically evaluating the purpose of a mission, goals, and vision is essential to an organization’s success. The customer has more power than ever before in a company’s determination to grow. Therefore, it is important that organizations have a clear goal and vision for their future. If the firm refuses to hold true to their statements, the company is likely to fail. Everything the organization does must follow their mission and purpose to their target audience.
The management strategy hierarchy leads to competitive advantage through various forms of intentionality. Leaders must delegate their strategy in the form of inspiration. When the strategy is being executed down the management line, the executives must clearly state the purpose and goal of it by coaching rather than telling (Roger, 2004). If executed correctly, the managers will find transparency while coaching the strategy down the line.
There are many different types of strategies to choose from as well as cost associated with each one. Therefore, choosing the correct strategy that is applicable to an organization’s direction is important (Raynor, 2008). Much like purchasing a tool, evaluating the importance of functionality in association with quality is much like choosing a strategy. The more cost that is invested in the strategy could make for a better competitive advantage. Receiving feedback from the collective group will give any strategy a more differential advantage. Much like any successful company such as Google, Apple, or Amazon have most likely utilized the strategy of using a unique group of people and collecting the various opinions to formulate a customer value strategy.
Analyzing, exploring, and developing a business strategy that not only defines an organization but also compliments it, will yield the best outcome for success. Once a strategy is established, it is important to understand the needs of the customers to which the firm is selling to. When all these steps are properly executed, the organization will have the best possible outcome to being successful.
ActiveNetworkChannel (2013). Value Driven Strategy Development. Retrieved from: https://myeducationmanager.tradepub.com
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