Business Strategy Formulation
Business Strategy is understood here as an explicit intentional statement of how the business operations will succeed in reaching its vision and business objectives.
Depending on type of business, organization, industry, size and market, different approaches to strategy formulation are valid. The Momentus Management Framework synthesizes the well-established approaches of the so-called position-approach, the competency or capacity-approach, and the formulation-process-approach.
The position-approach defines where the business is to be positioned on the market in order to make profit; this may be in terms of geography, customer segments, products and services, etc.
The capacity approach defines what type of key capacities are required in order to realize the market positions defined. Key capacities can be expressed in terms of processes, activities and resources e.g. competence of personnel, machines or patents.
The formulation-process approach focuses on strategy formulation, how to organize, key activities, which persons should be involved, and takes into account the cultural and political structures inherent in any organization. Only deliberate management of such a formulation process may secure successful result: definition of a position and the required capacities.
A formulated Business Strategy may include definition of key target groups, value propositions, channels, key processes, resources, suppliers, pricing strategy, and strategic goals with metrics for these components, including defined return on investments.
In addition to a formulated Business Strategy an Implementation Plan for how to realize the objectives defined in this strategy needs to be defined.
We believe that one key feature of a successfully formulated business strategy is that it explicitly articulates the relation between all its inherent components.
