Basis of Business Success


Strategic Management at the Basis of Business Success

Large companies, enjoy excellent internal management that allows them to be competitive on the market. But often the SMEs, which are the basis of the economic and industrial fabric of our country, do not know the advantages that a good business strategy could bring them.

There are numerous realities throughout our national territory that offer excellent products and services, but are struggling to establish themselves on the market.

This is also because the entrepreneur, generally the sole owner of a small and medium-sized business, is divided between personnel management, production control, the relationship with customers and suppliers, with lenders, etc… and has very little time to devote to the analysis of internal management or possible opportunities offered by the market.

To this must also be added the lack of culture in matters of planning, programming and control, all essential activities for correct business management aimed at developing a successful business strategy.

What is the Business Strategy?

Often the analysis of the economic and financial parameters of one’s company is confused with making a strategy. Nothing could be more wrong.

The strategy is the mechanism through which the action plan to be undertaken to achieve the objectives set is outlined. In this sense, the accounting analyzes are only the starting point, they photograph what is the current situation and the trend of costs and revenues.

Making a strategy means undertaking a reasoned path (on the data available), setting a clear, certain and above all feasible objective, analyzing the different actions to be carried out, checking that the prepared plan is implemented and verifying the results. This is strategic and management control.

Change Management Approach

A fundamental element is the approach to business management.

Often, the management style in SMEs is the “day by day” one, marked by the resolution of the critical issues and problems that emerge from time to time, but which are faced by looking for the best solution at the moment without there being a broader solution project. By doing so, the entrepreneur ensures that the current obstacle is overcome, but does not protect himself from any other problems that may arise. Furthermore, the market would suffer with a tendency to chase opportunities.

We need to change style and strategic consulting shows the way.

A rational and anticipatory approach allows you to think about where you want to go (planning), through which processes and actions to get there (planning) and verify the results along the way (in order to introduce any corrective measures) and once the goal has been reached (control).

A rational and anticipatory approach is a structured decision-making process oriented to the medium-long term (unlike the “day by day” one which focuses on the short term) and guarantees a decisive and controllable strategic plan of action: any critical issues and obstacles, if not already foreseen, they are managed with a different reaction force.


What is the Business Strategy for?

When the business situation is under control, in the sense that the entrepreneur has a clear understanding of how costs and revenues are formed, how processes are carried out, what are the strengths and weaknesses, such as waste or sources savings, it is possible to lead your company towards the set goals.

The strategy is for this:

  • to identify the mechanisms that have enabled the company to achieve (or fail) company results;
  • to evaluate the contribution made by each single production process to company results;
  • to evaluate the contribution made by each individual key figure of management to corporate results;
  • to provide the ability to make decisions promptly and with full knowledge of the facts (therefore more effectively and efficiently);
  • to anticipate market trends and not to suffer them;
  • to identify and address external market threats;
  • to identify and exploit the opportunities offered by the market in a timely and effective manner.

The Tools of Business Strategy

The management control moves on several levels to implement the business strategy and coordinates them in order to achieve the desired results.

Strategic management, which extends to corporate cost control, marketing management and sector analysis, aims to achieve successful performance.

The corporate strategy tools affect the entire production and business process and concern:

  • The analysis of company costs through cost accounting tools;
  • Cost management through cost management tools;
  • Building a budget;
  • Marketing management;
  • Organizational planning;
  • The improvement of production processes;
  • The analysis of the deviations (between what has been set and what has been obtained);
  • The creation of the report etc.

The business consultant is the key figure of business success, able to support the entrepreneur in identifying the profit opportunities available for the company and to formulate a strategy that fully grasps them.