In today’s highly competitive marketplace, it’s imperative for manufacturers to have a strong, sustainable business plan in place. Not only does a business plan assess how manufacturers address their competitive landscape, but also how they execute and support operational activities on a regular basis to reach an optimal level of consumer satisfaction. A well structured business strategy provides manufacturers with a detailed guide and illustrative map ? directing them towards their specific goals and objectives, while allowing them to coordinate their efforts aptly.
Benefits of a Strong Business Strategy
By developing a strong business strategy, manufacturers are able to outline their methodologies for daily processes and operations, enabling them to remain consistent, proactive and focused on their goals. With a strong business strategy developed and maintained, the following business aspects are ALWAYS clearly defined:
- Business environment: strengths, weaknesses, opportunities and threats
- Competition: sustainable competitive advantage
- Long-term goals: “real” objectives; structured timeline
- Priorities: defined responsibilities; set of procedures
- Problems: transparency of issues
- Business growth: recognized opportunities; pursued development
Elements of a Strong Business Strategy
A strong business strategy is developed meticulously, step by step. Each step is structured and implemented in response to the previous:
1. Operational level is defined: Operational decisions and goals are constructed based off of two main initiatives:
- – Outperform competition.
- – Reach an optimal level of consumer satisfaction; production and services meet exact needs.
– Objectives are generated in accordance to what has to be executed in order to reach main initiatives.
2. Functional level is defined: Management decisions are specified to each functional area of the manufacturing company such as engineering, marketing, purchasing, human resources, supply chain, commercial, logistics etc:
- – Department policies are supported by a defined set of procedures made specific to each area of focus.
- – Each department works independently to execute business objectives, as well as cohesively to support all departmental activities.
- 3. Sustainability: A strong business strategy is implemented and sustained by ensuring:
- – Level of productivity is measured regularly by set key performance indicators (KPIs).
- – Business strategy is designed to be flexible in order to adjust concurrently with internal and external factors, such as the economy, market conditions, change in demographics, technology advancements, laws/regulations, etc.
Solutions for Manufacturers to Strengthen Strategy
The benefits of having a strong business strategy in place are immeasurable. Manufacturers who do have a solid business strategy intact remain a step ahead of competitors who are ? let’s say, “strategy-less”. They are able to achieve superior quality production and lower costs, continuously improve their facility’s work environment and operational efficiency, optimize levels of consumer satisfaction, and look for new ways to enhance innovation, productivity, and growth
NJMEP can help with the strategic planning process. Our experienced facilitators can guide you through the process and help facilitate critical discussions. Contact NJMEP to learn more. Schedule a free evaluation by calling us at (973) 998-9801 or connect with us at https://www.njmep.org/contact-us/