1.2.4 How do I determine my Strategy?

Correct strategic management is an issue of great importance for your company. Your company´s success will depend on the application of what you learn. A set of guidelines will help you to employ correct strategic management and make the right strategic choices:

In the process of strategic choice you must consider the following questions:

  1. First, which of these options are built upon organisational strengths, help you overcome weaknesses and take advantage of opportunities, while minimising or circumventing the threats your business faces? This question is known as the search for strategic fit or suitability of the strategy. However, it is important to take other issues into account , e.g. to what extent could a chosen strategy be put into effect? Could the estimated financial resources increase? Will sufficient stock to be made available at the right time and in the right place? Are there enough staff with the requisite skills? Even if these criteria can be met, would the choice be acceptable to the stakeholders?
  2. Selection of strategy: Keep in mind that there is more than one strategy that you can choose. There is not a "right" or a "wrong" choice, because choices always contain different threats and weaknesses.

Once you make a strategic choice you can move on to the strategy implementation stage, which is comprised of the following steps. (Anwander 2002):

  1. Planning and allocating resources: Strategy implementation involves resource planning. What are the key tasks that have to be executed, what adjustments need to be made to your resources. What is the schedule for doing so and who is responsible for its execution?
  2. Organisational structure and design: Changes in your company strategy often require changes in the structure of your company. In some cases you may have to adjust your management systems.
  3. Managing strategic change: You also have to take into consideration that you need to manage strategic change. Strategic change management mechanisms are likely to be concerned not only with organisational redesign, but also with changing day-to-day routines and cultural aspects of the organisation, and overcoming political obstacles to change.