Many business strategies as much up to 67% due to the traditional way of thinking of strategic planning. Then why is it because of their adaptability to the real world?
A well-planned business strategy is the backbone of the business and allows the business to pivot, expand or find new markets for it to grow. As companies try to expand and grow when opportunities present themselves it is important to find new ways to adjust business concepts in an ever-evolving landscape.
Covid-19 pandemic proved to show the gaps in business strategy leaving many companies under pressure to provide for their employees, stay out of insolvency or pivot in a direction that allows them to improve their business or grow online. Other businesses within the supply chain networks saw a significant unplanned jump in eCommerce sales globally of $26.7 trillion according to United Nations placing shortages on these networks. Other industries and businesses just collapsed or went insolvent.
Unplanned surges such as this can make or break a company and their adaptability. Therefore, having the right business plans. The key to building the right business plan without failure is adaptability to the current landscape and forecasting on a macro and micro level in economics. Furthermore, in understanding the future needs in the industry, competitive rivalries and alliances are all part of what direction a company should move in their business strategy.
This isn’t a new concept. The same situations occurred during the 9-11 terrorist attacks, the global financial crisis and other events many companies have been able to adapt further with Harvard University stating in the last four downturns many of the big firms have had a 14% increase in sales growth rate and EBIT margin. Thus, suggesting an adaptable business plan.
All of which the above suggests, we must identify and adjust to new trends. Sometimes this is difficult when working on the front line and being in the trenches. You may need an external view to see and adjust your field of vision.
How do we Identify Growth Opportunities?
1 Find ways and habits by changing behaviour or opportunities to grow
2 Identify the type and duration of new trends that cause shifts in behaviour or opportunities
3 Deep dive into data and results
4 View from many different perspectives
5 Reconfigure the business model to be adaptive and competitive through your plans
As Henry Mintzberg stated “The real challenge in crafting strategy lies in detecting subtle discontinuities that may undermine a business in the future. And for that, there is no technique, no program, just a sharp mind in touch with the situation.”