Employing the right business strategy framework is a prerequisite for any & every business to obtain success. And, there are a plethora of frameworks a company can go for according to its needs and preferences.
In this article, I shall highlight the primary reasons why an organization cannot sustain without adopting an appropriate Business strategy framework and list out the top two for you to decide which one suits your business in the best manner possible.
The value of a Business Strategy Framework
- The primary reason what makes a strategy framework relevant is that it reflects the entire personality of your business. It encompasses the basic goal that your firm is planning to achieve along with its strengths and weaknesses. The uppermost objective of organizations plays a vital factor in shaping its Business Strategy Framework.
- There are times when you decide on a number of diverse goals that are not necessarily in line with vision with which you commenced the business in the first place. So, by deploying a strong & pragmatic strategic framework, you can make sure that your vision and objectives are completely aligned.
- Your workforce is the most essential part of your organization and it is important for them to have an understanding of how the business is supposed to function and what is their role to play in it. Therefore, when you have a solid business strategy framework, you are able to bring the goals of your employees in sync with the overall objectives of the organization.
Popular Business Strategy Frameworks of Today
- McKinsey’s Strategic Horizons: It is one of the most commonly used strategy frameworks that tells you to focus on innovation along with growth. It is divided into three parts that are called:
- Core Business: This includes the chief revenue activities that are relevant to your current business that revolves around upgrading margins, improving existing processes & attracting maximum cash flow.
Emerging opportunities:
This point mainly talks about comprehending the stuff that you already possess and stretching it to other lucrative areas where you can fetch more profits. For instance, if you have a clothing brand, you can launch a new product and extend your reach into new and better markets.
Blue Sky:
It is about taking new challenges by taking your business to unknown direction. This requires more investment and is significantly risky as it doesn’t promise profits in the initial stages.
The Stakeholder Theory
This is a famed business strategy framework that targets the well-being of different categories of people who are:
Employees:
The theory advocates a focus on employee welfare by enhancing salaries or else intangible benefits like L&D opportunities.
Customers:
Providing good quality products to the customers or increasing their accessibility.
The Community:
Doing something for the community such as offering jobs on large-scale or taking up the responsibility to bring betterment to the local community.
Society:
Going beyond customers as well as the community by working towards the improvement of the whole society by sponsoring research work, technological advancements or social work.