“If you don’t know where you are going, any road will get you there.”
From a business perspective, if Companies don’t know where they’re going, they can get lost along the way.
Companies develop in a shared environment with other organizations that follow their lead and pursue their goals. This is a very competitive environment, where only those that stay and achieve success are those that have a defined STRATEGY and identify all fundamental elements to achieve their objectives.
The major business schools around the world recommend that a Company should begin by asking: Where do we want to go from here? In short, the goal should be to identify and define the corporate MISSION of the Company itself.
To design a successful strategy, a Company should have clear in mind the goals it wants to achieve. This is the only way they will be able to design an effective strategy that will lead them to their objectives.
In general, when we talk about the MISSION, we are referring to the reasons why a Company exists. In other words, the reason that permits them to fulfill their daily activities.
Along with this MISSION concept, we should highlight the concept of VISION, which refers to the long-term image that the Company will have of itself.
This view helps us to establish that the MISSION refers to what the Company can accomplish in pursuit of its own VISION. This same outlook represents a projection of a Company’s expectations, and the position the Company would like to achieve in the future. It involves currently defining the business project that will consolidate over time.
As regards the origin of business strategies, much has been said about competition, an action implemented towards an adversary with the aim to achieve the goals previously described. Therefore, business strategy defines the behavior of a Company in a competitive and changing environment.
Business strategy should go hand in hand with the objectives and needs of different groups related to the business activities within the Company. In other words, one of the fundamental elements when it comes to developing a strategy is the prior analysis of internal, environmental, marketable, and competitive factors.
The benefits are thereby achieved and shared will all the interested parties of a Company, both at a direct and indirect level. These actors are known in English as stakeholders, who affect and are affected by actions, decision, politics or business practices. Currently, the Stakeholders Analysis or Environmental Responsibility are considered key elements in strategic planning.
We can list some of them as follows:
- Suppliers: The Company creates strategic alliances with the aim to create added value with partners and suppliers. A healthy supply chain generates both confidence and security.
- Society and the public in general: They have a responsibility to the environment and society where they work to ensure social license, reciprocity, and empathy.
- Government: affects the environment where business activity is developed by means of regulations.
- Creditors: creates value for investors and financial institutions.
- Clients: The Company will have to maintain a stable relationship with clients and involve them in the development of corporate social responsibility.
- Owners: achieve consistent benefits with business values, in a sustainable way.
- Employees: The Company has a commitment to its employees to pursue a higher quality of life, personal development, and fulfill their labor rights.
Business values for its part symbolize the basic beliefs that represent and condition the individual and group behavior in any Company. They establish criteria for a Company to follow, and consequently, becomes the basis for the strategic objectives of the business. Each action performed by the Company should align with the values of said Company.
The difference between the success and failure of organizations is that the successful ventures consider their core values in all activities. For this reason, it is important to observe the business values of a Company that remains stable over time.
This strategy should be based on a Company philosophy reflected in its vision and respect for its values.
A Company with clear concepts will develop an organizational culture at an internal and external level. This, in turn, will be perceived by its Environmental Responsibility in a way the generates trust in its ability to continue achieving future benefits. This will allow a business to benefit from the growing intangible value based on its prestigious image.
A Company that succeeds in consolidating its corporate personality has a story to share.