3.6.  Strategies

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The Guide > 3.  Mission, Strategies etc. > 3.6.  Strategies

Use bullets to highlight up to eight (or so) key strategies (actions, programs, projects, operating methods etc.) in relation to major functional areas - markets, sales, products/services, technology, finance, management, operations etc.

Be sure you are presenting realistic, medium-term strategies and not merely short-term tactics. The following table highlights differences between strategic and tactical issues when planning a holiday:

Strategic

Tactical

When to go ?

What to pack ?

Where to go ?

How to get to airport ?

Who to go with ?

Where to go on third day ?

How to travel ?

Hire car for a day ?

What budget ?

What presents to buy ?

How long to go for ?

When to use taxis ?

Clearly, it would not make much sense when planning a holiday to address the tactical issues without first having resolved the strategic matters. This also applies to strategic planning for a business plan.

Your strategies are critically important, as they become the road map for all the (tactical) detail presented in the balance of the plan. In essence, set out the basic strategies in this subsection and then use the remainder of your plan to flesh out the detail.

Use 3.5. SWOTs to prompt thinking on internal and external issues as indicated in the table below and explain how your plan will deal with them in strategic terms.

Internal

External

.. build on strengths

.. exploit opportunities

.. resolve weaknesses

.. avoid threats

Here are some possible strategies for a newly formed handbag designer/producer/distributor:

Markets:

Target high-income earners in the 18-25 age group
After two years expand into the 25-35 age group

Sales:

Initially, sell directly via own and third-party websites
Progressively appoint distributors and agents to target specialist retail outlets within xx States
Establish a foothold in the xx Country by means of a joint venture.

Offerings:

Limit initial offerings to four main designs of handbags
Extend range by reselling handbags produced within xx Country by 20XX
Extend range to include "weekend-size" cases

Design:

Update designs on annual basis with particular reference to xx trends

Operations:

Develop a networks of sub-contract manufacturers
Use third parties for distribution
Operate from rented space at xx City

Management:

Build up a strong experienced team (4) within first year
Appoint high-caliber non-execs (2) to board

Finance:

Raise external equity of $xx in two tranches in years 1 and 2.

 

For further guidance, see the online white papers on Devising Venture Strategies and Developing a Business Strategy.

Also, have a look at the free On-Line Strategic Planner that could be used to help draft this entire section as illustrated by the Sample Strategic Plan.

For latest information, see the Mission, Strategies section in the Business Plan Guide at http://www.planware.org/gstrategies.htm

 



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