Operating in the business recently was difficult in time of the economic down turn following the global economy that was seriously impacted by the U.S. sub prime crisis and escalated to damage the whole business sector worldwide. One of the questions often asked of the most management is “what will be the strategy to use in order to encounter the business target and what will be the distinctive capability to develop the competitive advantage".

Michael Porter has developed competitive strategy with the techniques for analyzing industries and competitors which is become the world wide core disciplines of industry analysis, competitor analysis and strategic positioning, are now an accepted part of management practice and has embraced as a powerful tool. However, it becomes the business practice with the key question of how to develop business model with the strategic adoption, formulation and implementation.

Conceptual Framework

The Business Model

For every successful business, there is clear business model which describes how the company operates and compete in the market now. It describes the distinctive, unique, strength, weakness that enable it to win the profitable business. The key questions are “ What business are we going to be? How robust is the current model? What assumptions is it based on? What does the organization consider are excellent result, both financial and other meaningful performance measures”.

Business model also needs a thought process to create which enables one to focus on the future as well as the present; provides the mission to accomplish the vision; provides the strategies and initiatives to accomplish the mission, while taking the steps to accomplish the vision. The process also enables to look three to five years into the future and lay out the appropriate strategies and initiatives to get there.  

The Business Plan

The Business Plan will serve many purposes which will help to define the purpose of your business with determination of the business growth patterns and any consequent problems before they arise; thus enabling how to deal with business problem effectively. The Business Plan is also an agreement on how your management team plan to carry out certain functions to achieve business results and serve as a means of measuring the company performance.  Read more....