The interdependent components of strategy ~ Sounds + Food 'n' Retail

The interdependent components of strategy

Premise of this post: Jeremy wrote a nice post today about the boons of starting young and I spent some time this morning advising my sister on writing a business-plan.

A picture says more than a 1000 words
components of business strategy.jpg
Strategy consists of three components, the financial, the product-market, and the organisational. All are interdependent and when they are in harmony, the chances of success are greatest.

For example, a larger organisation, which is a consequence of a more complicated product-market strategy, will also increase the need for financing, very likely the external kind.

Essentially you have to decide:

  • What type of product(s) do you want to launch? What kind of market are you targeting?
  • Do you want to be big (less control) or small (more control)?
  • Do you feel comfortable with giving away shares of your business to investors?
And some more, regarding what "building materials" you have available or want to use to build your firm. I'll write more about it, when I have more time.

I created the picture myself, but it was inspired by a graph in the book "Entrepreneurial Finance".


 

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