Nowadays everybody talks about strategy. There are strategies for everything – “Strategies for Every Type of Email Pain”, “Feeding Strategies” for cats and dogs and not to forget our infamous “Chocolate Strategy”.
As you can see, strategy seems to be a buzzword these days. But before we continue with our strategy talk, I want to make sure that we’re all on the same page and know what strategy even means. Watkins has published an interesting article in which he nicely defines “business strategy” as “a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making”. In other words, a strategy is something like a compass or navigation system that shows you which direction to take to, ultimately, accomplish your desired objective. Plus, besides having a “compass”, there is more you need for establishing a successful business.
1. Vision = Ultimate goal (destination)
Your vision states why you’re doing what you’re doing. It serves as an inspiration for every stakeholder of your company and is a long-term future goal. Here’s an example by IKEA – “To create a better everyday life for the many people.”
2. Mission = Path that leads you to your destination
Your mission statement describes what you’re doing in order to reach your ultimate destination. For instance: IKEA -“We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”
3. Strategy = Compass that guides you
Your strategy talks about how you want to do what you’re doing in order to reach your ultimate destination. In this case, IKEA hasn’t specified one strategy but an example could be: the expansion of store network so that people everywhere can buy IKEA’s products.
When you start your business, start collecting ideas for your vision, mission and strategy. Naturally, you may need to refine them along the way because your business environment changes or there’s simply more to consider than you thought.
Therefore, for the next few Wednesdays, we’ll be posting articles that have to do with different aspects of a “Business Strategy” to inform you and provide you with inspiration for your vision and mission! Here’s a sneak peek of what to expect:
- What’re your products’ jobs?
- What are your customers’ pains and gains?
- Is your product a candy, a vitamin or a painkiller?
- What’s your value proposition?
Also, if you have any questions or comments, simply leave a message in the comment section below!