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How do companies formulate strategic plans?

How to formulate strategic planning, you can read the classic strategy textbook "12 Must-read Strategic Management Articles", which has a very detailed and practical introduction.

Some people say that strategy is "our company must achieve 500 million in the next five years." This can only be regarded as a strategic goal. The so-called strategy is to solve the problem of "what"; when doing strategy, Generally, the top-level design above the strategy needs to be solved, which is divided into three parts, called vision, mission, and values. For these three parts, they interpret the role and code of conduct that the enterprise should play from the perspective of social role. In these roles and codes In this way, strategy becomes the “approach” and the means to realize the vision.

Therefore, when diagnosing an enterprise, at the strategic level, first look at whether it has clearly stated its vision, mission and values; and then look at whether the strategy has been clearly stated. Even if it is clearly stated, whether it has been declared. Whether the phrase that penetrates into everyone's mind or the mind of a core person is consistent in everyone's mind, and whether this "central idea" is reflected in daily behaviors and affairs.

Why develop a strategy?

Strategy is the externalization of positioning and focusing thoughts. A company grows rapidly and its performance improves. But if it wants to shift from business orientation to strategic growth and become orderly, every penny has its own value. Reflection, then strategy plays this direction and normative role. It tells you whether an action you make conforms to strategic positioning and norms. If an accident occurs in the middle, how to adjust to avoid unexpected surprises, or to make the accidents controllable. .

How to formulate a strategy?

The company's strategy generally includes five parts, the company's current situation, company goals, company leadership, industry environment, and competition;

First, let's talk about the company's current situation. On the one hand, it includes the historical development of the company, considering the success factors of the company's development history, which plays a connecting role in the subsequent strategic positioning; secondly, it includes the company's advantages and opportunities. For a specific example, if a company wants to make a strategy, it will first look at it Whether there are long-term stable advantages in the region and whether there are advantages in products, based on this dimension, the strategic positioning and foothold will be clear, and the first step will be taken;

Second, corporate goals. The corporate goal is first of all a financial indicator. Then the financial indicator must be clear as to how large it will grow in the next few years. No matter how empty the goal is, it must have such a number; from the perspective of corporate goals, strategy is a path , it becomes a means to realize the present and the future.

The third is entrepreneurs. For an entrepreneur, the enterprise is the means to realize his dream. In the early stages of development, large enterprises bear the brand of entrepreneurs everywhere, from corporate values ??to corporate development direction. Therefore, corporate ecology is often mentioned. In fact, it is an interpretation of the entrepreneur circle. It is more about the entrepreneur circle. Those people are in the inner circle, those are in the outer circle, and those forces play a decisive role. How to take advantage of the situation, how to leverage the strength, and how to channelize , rather than blocking.

The fourth is the industry environment. Not only the development of the entire industry, because the development of the entire industry has little impact on an enterprise, but ultimately the regional industry situation has the greatest impact, because an enterprise is most closely related to the development of the regional industry. Therefore, industry research on regional economies should be the focus of a corporate strategy.

The fifth is competition. For this competitive situation, in addition to analyzing the success factors of core competing companies, we also need to see where the opportunities are in the distribution of this competitive environment. Where is the difference? In terms of product differences, channel differences, regional divisions, etc.; from the perspective of the development of the entire industry, competition is an important part, but the theme is competition and cooperation.

It’s not scary to go the wrong way. What’s scary is not knowing you’re going the wrong way! The law of reverse direction gives competitors the opportunity to develop at twice the speed, and the results can be imagined!

Each of us, whether socializing, traveling, or entertainment, is exposed to no less than 10 forced advertisements per day on average. From elevator advertising, shopping mall advertising, mobile phone, computer advertising, outdoor advertising, radio advertising, etc., too much information is involved, and the cost of consumer choice has increased exponentially compared to more than ten years ago.

The "father of positioning" Jack Trout once proposed a famous "law of duality"

In a mature and stable market, consumers' mental space is often only Can accommodate two brands. If your brand cannot be one of the best in the same category, you need to rethink your strategy.

Several core problems with brands:

1. Fierce competition in the industry and weak category labels

2. Difficulty in brand exposure and expensive traffic costs

3. The cost of consumer choice is high, and the influence of brand consumers on their minds is weak

However, even if we are aware of these problems, it is even more difficult to solve them! When we studied the relationship between brand cases and corporate decision-makers, we discovered a core problem. Most of the corporate decision-makers of those "dead" brands think in "point thinking"!

The so-called "point thinking" means that in the process of brand operation, the solutions proposed are based on the needs of the current stage, such as improving exposure to solve customer flow problems, but ignoring creative content development, or by lowering prices to promote transactions, but ignore consumers’ motivations for purchasing products or whether the product can provide the ability to solve customer pain points.

Brand competition has changed from the era of pure product competition and productivity competition to the competition of comprehensive strength! It is difficult to adapt to the contemporary market environment using the traditional model of the past.

In the process of competition for comprehensive strength, most business owners are constantly trying and making mistakes. In order to increase exposure and traffic conversion, they have done enough on channel promotion and price, but they lack overall strategic planning and tactics. Deployment is particularly blind when executing operations, and the target achievement rate is low. Many business owners' "inherent thinking" and "point thinking" due to lack of systematicity lead to high investment costs, low transaction volume, and long time in later operations. , team confidence is lost, and brand operation is difficult.

To break through fixed thinking and point-based thinking, we need to make breakthroughs from the following three aspects:

1. The business owner’s own mental adjustment: be more open, willing to introduce and fully trust the professional team and talents, which is the basis for reducing the cost of trial and error;

2. Improving one’s own cognitive height and industry acumen through effective practice can help make better decisions;

3 , learn to test the effectiveness of strategies. Strategic planning is divided into long-term strategic planning and medium- and long-term strategic planning. Long-term strategic planning is based on a full understanding of the development laws of the industry, but is also forward-looking; and medium- and long-term strategic planning must be Actionable, implementable solutions built at the enterprise development stage to help enterprise teams execute efficiently.

Let strategy be the leader of the brand!

The core purpose of the strategy is to reduce the trial and error cost of the enterprise. After all, time is the most precious! When it comes to strategy, we are never vague! In order to ensure the effectiveness of the strategy, we start from the bottom-level needs of users and explore the real needs of consumers! And combine product design and new media marketing to make the brand deeply influential!

In the process of strategy formulation, we combined with the excellent domestic tutor advisory group to summarize dozens of original system models in nearly a hundred practical cases, from brand positioning to customer transactions, to truly help enterprises While doing strategic planning, obtain effective traffic and improve brand conversion!