How to develop a strategy that is workable

1. Developing a sound
business strategy
(product/service)
By
Angela Ihunweze
Entrepreneurial/marketing consultant
CEO of Angela Itambo Company
080 33 28 04 53

2. Presentation overview
 Why is this topic necessary?
 What is a strategy?
 When is a business strategy considered sound?
 Various variables to consider when developing a sound business
strategy?
 What is SWOT analysis and how can it be done?
 Steps towards undertaking a SWOT?
 The format for developing a strategy and its challenges?
 Implementing the strategy?
 When a strategy fails?
 Creed for a sound business strategy?

3. Why is this topic necessary?
 The peculiar nature of an SME business; which is characterized with the following:-
1. limited resources e.g. funding, human
capital e.t.c
2. High cost of starting and running a
business and this is further increased when
there isn’t a strategy in place
3. Stiff competition from within and outside
4. Constraints in entry to the marketplace
5. Challenges in acquiring funding
 The state of the business terrain particularly in a country such as Nigeria. These and
many more makes operating a business especially in a country such as ours
challenging and has led to a lot of promising entrepreneurs closing shop. To
maneuver in a business environment such as ours it is necessary to be armed with
what is necessary to succeed. Your goal as an entrepreneur is to succeed despite the
odds. This can only be achieved by developing a sound business strategy and
planning along that line

4. What is a strategy?
 The origin of the term
The term strategy originated from the battlefield, armies never went into a
battle without a strategy. Smaller armies overdrew bigger armies by the
careful execution of a strategy, even entering enemy territory, one needed a
strategy. The same can be said of business, doing business especially in this
era of globalization needs careful maneuvering which can only be got
through strategizing.
 Its definition; according to the advanced oxford dictionary a strategy is
defined as;
1. A plan that is intended to achieve a particular purpose.
2. The process of planning or carrying out a plan in skillful
way
3. The skill of planning the movements of armies in a battle or war

5. Various variables to consider when developing a sound strategy?
In developing a sound business strategy certain variables must be
considered:-
 The business environment of the intended business; this is why a
SWOT analysis is needed. This information will give a clear picture
of what is on ground and the position you should take either as a
pioneer, follower, or a niche. ((This is as mentioned in one of the
definitions of a strategy)
 The form of your business; there are differences in strategy
formulation from a service business to that of a product.
 The most ideal option to use as regards the resources at hand. The
option to consider will be determined by the outcome of your SWOT
exercise.

6. When is a business strategy considered sound?
A business strategy is sound when :-
 It is developed based on a careful consideration of what
it entails to transact the business
 Can be understood by the team involved in the business;
even potential stakeholders of the business
 It is easy to implement
 It is not rigid; can be audited and adjusted when the
need arises
 It brings the desired results

7. What is SWOT analysis and how can it be done?
What is SWOT analysis?
SWOT is defined as ‘to study a particular subject hard, especially with the intention of
passing an examination or test or succeeding in a mission. As regards this topic; your
aim of undertaking a SWOT is to carefully examine your business from within and
outside with the intention of using the information to formulate a game plan for its
good. SWOT is also acronym of the following words:-
 Strengths; which connotes the inner qualities found in favour of the business; e.g. the
managerial competencies, it network strengths, the leadership style
 Weakness; hidden foxes that destroy the vine; if not removed can be disastrous.
 Opportunities: the above, strengths and weaknesses are internal examination of the
managerial competencies of your business. Opportunities and the next acronym are
careful examinations of the external business environment which can aid the strategy
formulation for the business. Opportunities as the name implies is a period of time
when circumstances are right for doing or when a particular situation makes it
possible to do or achieve given idea or task .
 Threats; connotes possibility of trouble; danger or disaster as regards the
opportunities been sort after

8. Steps towards undertaking a SWOT
In undertaking a SWOT analysis you need to imbibe the culture of research, which simply
entails a careful study, especially to discover new facts or information about it.
 The next step is to have a clear understanding of the form of business you are into and its
peculiarities and what managerial competencies are required. In business we have two distinctive
forms of business; product which is a tangible business offering in exchange for money. It can be
seen, felt, touched to form an opinion whether to use it or not. While we have a service which is
can not be seen but is cheaper to start or operate. However these forms of business requires
certain managerial skills and environment standards before it can function appropriately.
 Once this information is collated, it can now guide you on the bench marks expected during the
process.
 In defining your strengths, you have to carefully analyze your managerial capabilities, leadership
style, business systems to see where you possibly have an edge
 The same goes for weakness, owing to the nature of your business it is ideal to detect for possible
difficulties that may truncate the plans been executed which can jeopardize the business.
As mentioned strengths and weaknesses are within the confines of the business; the next step is to
undergo investigation on the following;-
 Opportunities that exist in the environment of choice, take note opportunities are circumstances
which makes certain business ideas flourish. Wherever there are challenges, there lies
opportunities
 However not every opportunity should be considered. This is as a result of the threats accrued to
it. Many blindly invest in opportunities without uncovering all the possible threats and weighing
them to find out if there can handle them It is in undertaking this exercise, you can now choose
the most suitable opportunity to explore and formulate a strategy on how to take advantage of this
opportunity while maneuvering the possible threats.

9. The format for developing a strategy and its challenges
 Pioneer, you are the first to introduce this business into the market
or your business environment, as regards challenges, you should be
armed against attacks from competing brands, especially those with
bigger budgets. Your action will be on how to fortify your business
territory, while expanding to capture more grounds
 Challenger; there is a market leader, your business is challenging its
dominance in the market place, be sure that the pioneer wouldn’t sit
down and wait for you to over through. Be ready to match Naira for
Naira . For every action against it there is a reaction.
 Niche; you are not out to challenge, rather select an area which may
be considered in consequential, however you will be faced by intense
competition when it is noticed you are making a success of it
Whatever you choose to be, it can only be made possible after a
thorough SWOT exercise has been done. Formulating a strategy
alongside any of the above, is to enter the market and lay claim to it
while warding of potential entries.

10. Implementing the strategy
A strategy becomes sound when it can be translated to actions. To achieve this an entrepreneur must:-
 Understand his or her form of business, its peculiarities
 Through research, undertake a painstaking SWOT analysis
 Based on this, you should decide on how to enter the market, either as a pioneer or challenger or niche, the
strengths and weakness exercise will give a true picture of its capabilities, from managerial competence to
leadership style
 Translating strategy to actions should be done along this criteria:-
 Consumer wants, In order to attack, enter the market and lay claim you should ensure your strategy takes into
consideration the real wants of the consumer. What the customer expects from your business offering
 Consumer costs; In passing the cost to the customer, it should align with the perception of the customer and
image you are trying to portray in your business strategy; which fits its idea of the type of product/service that can
satisfy his need.
 Consumer convenience; the business offering must be easily accessible to the customer
 Consumer welfare; must be schooled on what is expected of them as regards maintaining expected standards and
in turn be motivated to do so.
 Consumer awareness; must not be on a high budget, however what is key is that the right message that
encapsulates the strategy is passed on
Finally to ensure all these programs are laudable a business plan should be created to capture the essence of the
strategy

11. When a strategy fails
 Poor planning and implementation
 Failure to adapt to environmental changes
 Lack of commitment, from the staff as well
as the entrepreneur
 Lack of audit from time to time

12. Creed for a sound business strategy
 Have a clear idea of what you want
 Be prepared to dig for all the information needed
 Despite how brilliant your strategy may be, you must be
committed to see it work, because your strategy reaffirms
your reason for being in business
 Always evaluate your strategy and fine-tune it from time
to time to suit the environment and situation
 Never give-up
 God bless you in Jesus name. Amen