If an enterprise wants to implement its business strategy smoothly in the economic market, it needs to do its own business strategy analysis. This paper summarizes the specific methods of business strategy analysis as follows:
Enterprise management strategy. Balanced strategy of enterprise development
Enterprises should consider the possible risks when investing in every new project, which is a prudent management attitude. If you don't succeed, consider failure first. If you don't buy, consider selling. If you don't succeed, think about what will happen if you fail. Mr. Li Ka-shing said that a mechanical watch, as long as there is something wrong with one of the gears, your watch will stop. The same is true for a company. As long as an organization has a weakness, it may lead to the failure of the enterprise. It is very important to balance all aspects of enterprise development, and we can't let go of any detail. Cash flow and corporate debt percentage are the most important details. Enterprise development should be fully prepared, do what you can and balance risks. Only by unifying the development direction and strategy of enterprises with the idea of balanced development of enterprises can we develop a ship with a long history.
Business strategy ii. Control the "smile curve"
The "smile curve" was put forward by Mr. Shi and summarized vividly. This is a profound summary of the invasion of manufacturing for many years. "Smile curve" is actually a way to find added value, so that more manufacturing enterprises can know and understand their own positioning. From the horizontal axis, from left to right is the upper, middle and lower reaches of the industry, that is, spare parts production, product assembly and distribution; Seen from the vertical axis, the vertical axis represents the level of added value. General manufacturing enterprises have little or no added value. To take a step back, from the perspective of market competition, the left side of the curve is global competition, and the core of success or failure lies in technology, manufacturing and scale; On the right is regional competition, and the key to success is brand, channel and operation management ability.
Enterprise management strategy. Enterprises should have the ability to foresee the crisis.
The rapid development of enterprises has been described as "Huawei's winter", which is what Mr. Ren said. Mr. Ren emphasizes balanced development, constantly strengthens the construction of management system dominated by process and timeliness, and constantly optimizes enterprise work and improves efficiency while improving the overall core competitiveness of the company. We should have a heart for change and correctly handle and face the crisis. Enterprises should implement comprehensive value system management. Enterprises will freeze to death in the face of crisis if they are not prevented and foreseen. As a result, whoever has cotton-padded clothes will survive.
The specific methods of business strategy analysis are fully mastered by enterprise managers, thus ensuring the benign development of enterprises in the economic market. If an enterprise wants to implement its own strategy smoothly in the economic market, it needs to do its own strategic analysis. This paper summarizes the specific methods of business strategy analysis as follows:
First, the balanced strategy of enterprise development
Enterprises should consider the possible risks when investing in every new project, which is a prudent management attitude. If you don't succeed, consider failure first. If you don't buy, consider selling. If you don't succeed, think about what will happen if you fail. Mr. Li Ka-shing said that a mechanical watch, as long as there is something wrong with one of the gears, your watch will stop. The same is true for a company. As long as an organization has a weakness, it may lead to the failure of the enterprise. It is very important to balance all aspects of enterprise development, and we can't let go of any detail. Cash flow and corporate debt percentage are the most important details. Enterprise development should be fully prepared, do what you can and balance risks. Only by unifying the development direction and strategy of enterprises with the idea of balanced development of enterprises can we develop a ship with a long history.
Second, control the "smile curve"
The "smile curve" was put forward by Mr. Shi and summarized vividly. This is a profound summary of the invasion of manufacturing for many years. "Smile curve" is actually a way to find added value, so that more manufacturing enterprises can know and understand their own positioning. From the horizontal axis, from left to right is the upper, middle and lower reaches of the industry, that is, spare parts production, product assembly and distribution; Seen from the vertical axis, the vertical axis represents the level of added value. General manufacturing enterprises have little or no added value. To take a step back, from the perspective of market competition, the left side of the curve is global competition, and the core of success or failure lies in technology, manufacturing and scale; On the right is regional competition, and the key to success is brand, channel and operation management ability.
Third, enterprises should have the ability to foresee the crisis.
The rapid development of enterprises has been described as "Huawei's winter", which is what Mr. Ren said. Mr. Ren emphasizes balanced development, constantly strengthens the construction of management system dominated by process and timeliness, and constantly optimizes enterprise work and improves efficiency while improving the overall core competitiveness of the company. We should have a heart for change and correctly handle and face the crisis. Enterprises should implement comprehensive value system management. Enterprises will freeze to death in the face of crisis if they are not prevented and foreseen. As a result, whoever has cotton-padded clothes will survive.
The specific method of business strategy analysis is something that enterprise managers should fully grasp, so as to ensure the benign development of enterprises in the economic market.
Seven misunderstandings of enterprise management strategy
1. Wrong judgment on competitive environment
Many enterprises have wrongly recognized and judged the changes in the competitive environment. Although many of them once occupied the leading position in the industry, they ignored or misunderstood the signs of changes in the competitive environment, which eventually led to serious erosion of their competitive advantage. The author points out that in order to avoid misjudging the competitive environment, it is necessary to cultivate a corporate culture that is sensitive to environmental changes. As Intel's Grove said, this is an era of "only paranoia can survive". In the analysis of competitive environment, we must correctly define our own competitive space, not only limited to existing competitors, but also bring potential and new competitors into our field of vision. In addition, it is necessary to build an effective competitive information system to ensure the smooth flow of relevant information within the organization and make it properly handled and applied, so as to provide a reliable and effective information platform for correctly formulating business strategies.
2. Biased assumptions
Some enterprises base their strategies on a series of wrong preconditions, or fail to update the preconditions of strategic decision-making with the change of environmental conditions. People often say that the bitter taste of good medicine is good for the disease, which refers to this phenomenon. In this paper, the author asserts that in order to get rid of this dilemma, enterprises must always carefully verify some assumptions, premises and ideas they are used to. Some taken-for-granted preconditions are often adopted without careful consideration, and the resulting business strategy is very risky. In addition, all the premises and assumptions should have strong consistency and can reflect each other within the overall strategic framework. At the same time, according to the different importance of enterprise management strategy, different premise assumptions can be classified and treated differently. Finally, don't forget that with the passage of time and the evolution of the environment, we must redefine various assumptions to ensure their effectiveness.
3. Self-weakening of competitive advantage
It comes from adopting a constant enterprise strategy or looking at the strategy from a static point of view, which leads to the inability of enterprises to adapt to the changes in the external environment, the temporary strength can not be successfully transformed into a sustainable competitive advantage, and it is bound to fall behind in the market competition. The author's prescription for this is that enterprise executives must establish a global and dynamic consciousness, base their enterprise activities on the process and focus on the value chain of the enterprise. And expand the scope of enterprise activities to customers and suppliers. We must pay close attention to the advantages and disadvantages of each link in the enterprise value chain relative to competitors, and create value in various forms around the value chain. Efforts should be made to integrate various value-added activities of enterprises, pay attention to the dynamic process of competitive environment, and add unique value to enterprises in an innovative way. Only in this way can enterprises maintain a sustainable competitive advantage in the market.
4. Blindly expand the value of self-destruction
Enterprises often succumb to the impulse of blind diversification regardless of their own conditions and blindly enter some business areas that they are not good at. The result is often not worth the loss, but it reduces the value base of the enterprise. In my opinion, if we want to make achievements in diversification, we must always be close to the core competitiveness of enterprises. The core competitiveness of an enterprise is the basis of its foothold in the market and the source of its competitive advantage. Therefore, in the process of enterprise diversification, it is necessary to make new business areas strongly supported by the company's core competitiveness and transform them into corresponding market competitive advantages, so as to obtain synergistic effects in diversification. From the perspective of enterprise value chain, whether new business can become a natural extension or an effective supplement to the existing value chain of the whole enterprise should become an important weight in diversified business decision-making.
5. Subject to organizational structure
In the traditional enterprise organization, different departments have a clear division of labor and assume different functions and responsibilities. In the process of implementing enterprise strategy, the fragmentation of organizational structure often evolves into an insurmountable obstacle. Therefore, under the traditional organizational framework, it is almost difficult to cross different functional departments, and then build an effective coordination and integration system to dominate the core process. In order to break through this dilemma, the author's point of view is that it is necessary to completely transform the traditional organizational structure and create a novel boundaryless organization form. Here, we also need to follow the concepts and methods of business process and value chain. First of all, we should define the strategic atmosphere and find out the key objects involved in the strategy and their relationships. Then design the corresponding organizational structure, and then realize the coordination and integration within the same organization and between different organizations. Only by setting clear goals, communicating effectively and using cross-functional organizations can we break through the barriers and let all departments of the organization operate smoothly.
out of control
There are usually two reasons why enterprises are out of control: first, enterprises blindly pursue some arbitrary and rigid goals; Second, the strategic control system of enterprises is unbalanced, and it is impossible to reach a balance among corporate culture, incentive system and behavior norms. The traditional strategic monitoring process consists of three parts: formulating strategies and determining specific goals; Implementation strategy; Evaluate the actual performance according to the established goals. Therefore, there is a time delay between strategic formulation and strategic control. This can cope with a relatively stable competitive environment, but in a changing environment, it will be stretched and even out of control. In order to control the implementation of the strategy, the author puts forward that a "double-loop" monitoring system must be adopted and the target itself should be evaluated in real time. Through the information between strategic formulation and strategic control, through the behavior between strategic implementation and strategic control, the whole strategic control system is completed. It is also necessary to build a corporate culture consistent with the strategic objectives of the enterprise, improve the corresponding incentive mechanism, and establish a code of conduct. At the same time, it is necessary to keep them in harmony and ensure that they can adapt to the changes of the external environment over time, so as to maintain the indispensable flexibility of the organization in the ever-changing environment.
7. Leadership failure
In the process of implementing enterprise strategy, strong leadership plays a vital role in the ultimate success. However, we can often find that many executives of enterprises are either headstrong or indecisive, turn a deaf ear to some basic principles, and cannot provide strong leadership skills that enterprises urgently need to achieve strategic planning. Such enterprises often fall into an embarrassing dilemma, and their strategic planning often becomes elusive castles in the air. In the author's view, in order to successfully lead enterprises to achieve strategic goals, enterprise executives must create a sense of urgency for change in the organization and take action quickly and decisively; It is necessary to shape and convey the long-term plan of the enterprise and reach a specific action plan for the long-term plan; At the same time, it is necessary to formulate the objectives of the enterprise and give them to the front-line employees widely, so that they can work hard to achieve the strategic objectives of the enterprise; In addition, we should constantly sum up the gains and losses in the process of strategy implementation and institutionalize the beneficial changes that have taken place. Only in this way can enterprises make concerted efforts in Qi Xin and make steady progress towards the established strategic direction.