Consulting - Strategy Management

Most small and medium-sized enterprises (SMEs) first find a niche to develop, but over time, that niche may disappear, making it very difficult to survive. They must expand their advantages on the existing basis or find new niches to transform and adjust; otherwise, even if they have grown to a certain size, they will eventually be eliminated.

The environment and competition are dynamic, so they need to be constantly reviewed and adjusted, and even drastically changed, to make strategic choices. Whether different companies have strategies and policies may not have a significant impact in the short term, but the differences will be substantial three years later.

A good strategy requires a comprehensive assessment of changing business environment trends, core competencies, and relative competitive position before it can be formulated. Sometimes, it even necessitates making drastic decisions to survive. We advised one company to close down, and the owner was genuinely grateful, finally free from the burden of saving face. Another company, operating in an era of industry overcapacity, set its goal to be the last company to go bankrupt. Instead of price competition, it actively pursued vertical integration of its manufacturing processes, product innovation, and conserved cash. After weathering the headwinds, it then waited for the opportune moment to seize market share.

A strategy is only useful if it can be effectively executed. A complete strategy, in addition to consensus and integration of policies, requires a business plan and budget, and must be implemented by various departments within the organization. Otherwise, the strategy is just empty talk. Some companies have strategies but no consensus or business plan, or they have business plans but no guiding strategy. Some even have annual budgets prepared by the finance department and decoupled from the business plan. Naturally, the results are not ideal, and even if good opportunities arise, they cannot be effectively seized.

 

Leading the company to cope with changes in the external environment, integrate, analyze and review internal problems, establish correct and appropriate development directions, goals and strategies, and concentrate organizational strength (resources) to reasonably invest in key matters, ensuring not only short-term operating performance, but also long-term survival and development.

 

 

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