How do you know if a business has a strategy?
How do you know if a business has a strategy?
This is a valuable information that a lot of people want to know, especially those with interests related to the business such as owners, investors, banks, buyers of corporate bonds, suppliers and competitors.
As an organization specialized in strategy, Sleader is often asked a very similar question: “Is this company okay?” In such cases, we often ask them back: “What do you want to know for?” The most common answer is: “I\’m going to buy shares of that company.” It is clear that if the answer is “Yes”, then the questioner will gain more confidence to “jump to it” and bet his/her investment in the company. In the opposite case, for the answer “No”, the questioner will take more time to consider, even give up on the original investment intention!
Coming here, there will be many people wondering, how can you answer the questioner a question that seems so simple but so unclear? The secret to the answer lies in the word: “Strategy.” What is the future of a company? Whether the business results grow spectacularly or not depends on if the strategy that the Company pursues is right. Therefore, investors, who want to increase the value of investments to beyond expectations, must buy shares of a company with a strategy, especially that must be a right strategy. In fact, there are quite a lot of companies publishing strategic contents (vision, mission …) very “monumental” but having poor business, products with unstable quality, wrongly identifying customers or a lot of complaints. It\’s the “nominal” strategy, not the “real” strategy. Those who believe in the strategic statements of those companies will inevitably lose money. Investors, especially those in the stock market when starting to enter the market with a small investment for themselves need to consider this carefully.
Signs to recognize the difference between a “nominal” strategy and a “real” strategy were given by Sleader in the hand book Decoding: The East-West Strategy. Investors can find out more.
News and photos: Institute for Strategic Leadership Development (Sleader)