subject: Strategy Gets Small Businesses Going [print this page] Devising a strategy is the most critical task for a company to help create value and achieve its commercial objectives. A well-documented and properly implemented strategy enables a company to get its products off the ground and help it to position itself strongly in the market. strategy is essential for SMEs to create sustainable competitive advantage.
Crucial for success
The significance of a well-defined strategy cannot be denied in getting the business on a growth track. Companies must not restrict themselves to only designing a strategy, but also put the same into action. Leaders in both small and large enterprises spend much of their time planning and devising ways to drive their growth. However, only a few emerge successful in putting those thoughts into action. Even the most seasoned leaders sometimes find it challenging to fully implement their strategy and convert plans into action.
SMEs generally have better visibility in their systems, resources and areas as compared to large enterprises. This gives SMEs a distinct advantage over big business enterprises and the former can work more effectively on transforming their plans into action.
Considering their size, it is not difficult for small firms to see to it that different divisions in the company implement the company strategy and follow a planned course, said Prakash Agarwal, proprietor of Hemant Collections, a small-sized garment store in Kolkata.
In spite of having an edge over big players in few aspects, several SMEs stumble when it comes to strategy implementation. To successfully put into effect their strategies, small businesses must let their employees at different levels place their faith in the strategy and envisage how they will contribute in helping the organisation realise its goals.
Developing a common understanding of the overall strategic goals across the organisation is essential in order to achieve the companys objectives. Without a strategic course, a difference is bound to remain between ideas and execution. A well-defined strategy can help executives to bridge the gap between envisioned goals and reality, said Avinash Jajoo, director of Tax Consultants, a small-sized financial consultant provider in Mumbai.
The goals and companys organisational structure that support its vision and mission must be concrete and achievable in order to help a strategy turn into reality. An unclear communication process and improper understanding of organisational goals will leave strategy planned by the leaders unclear to other company executives. Without a specific, detailed strategic alignment, there is always a danger of company failing to keep up with its core values and faltering in retaining its competitive edge.
Communicating the vision across the organisation with specificity of goals and objectives ensures that employees understand what is expected of them and work towards achieving the strategic goals.
