Business strategy for growth

Devising A Strategy for
Growth
Mission, Vision, Values
Brian O’Connell
www.thebitterbusiness.com

Think!!
Can you out think your competitors?

• A business needs strategic thinking
before any strategic planning.
• “If today was the last day of your life,
would you do what you are about to do
today” Steve Jobs
Take Time to Think

• The purpose of the business
• Strength of the Business
• Strength of the team
• Current effectiveness
• Financial resources of the company
• Target market trends
• Current market position.
Ask and Answer

• Real planning and growth strategies
are founded on “Business Purpose”
• Vision: where the business is going in
the long-term
• Mission: the business purpose and
reason WHY for existing
• Values: Who and what the business
stands for
Know Why

• Think about the Business Mission
• The business mission concentrates on the
here and now. A mission statement defines
the fundamental purpose of any business. It
identifies who the company is, what it does,
and who it serves.
Business Mission

Why Plan?
Die Quickly, Die slowly, Survive or
Thrive

Business Planning
Ineffectively Effectively
DIE QUICKLY
“A poor plan executed well”
THRIVE
“ A great plan well executed”
DIE SLOWLY
“ A poor plan executed
poorly”
SURVIVE
“ A great plan executed
poorly”
Strategy for Growth – Doing the Right things
Tactics-Dothingsright
InefficientlyEfficiently

1. Start with goals – what do I want out of this
business?
2. Create a vision of what the business needs to
look like in order to accomplish your goals.
3. Create a business mission to guide you along
the way.
4. Develop strategies to get you from where you
are now to where you want to be in the future.
Strategies require investments – which means
budgets, resources and timelines.
Take the Thrive Option

• Strategic planning is the process of
determining the primary business purpose
(the “WHY”), putting in place goals and
tactics, then adopting courses of action
and allocating resources to achieve the
selected goals and tactics.
Strategic Planning

Steps in the
Strategic Planning Process

Building Blocks for a Successful
Business
• The Team
• The Product or Service
• The Market.
• Each factor or a combination will most likely
determine the success or failure of any
individual business with a particular focus on
the product to market fit.

What causes business
success?
• Has history shown us that the No.1
business killer is lack of market?
• When a great business team meets a
stagnant market, market wins. When an
average business team meets a great
market, market wins. But when a greatgreat
business teambusiness team meets a great marketgreat market, then
something really special happens.

Ideal Growth Plan
• Differentiated Business Strategy
• Desirable products or Services
• Big enough market
• An economical way to target and serve it.
• A Strategy borne out of your greatest
strengths
• Note: Product quality will not create market size;
Steve Jobs learned that lesson with his NeXT
business.

How do you Differentiate from
your competitors?
BUSINESS STRATEGY OPTIONS

Business Strategy Selection

• Market PenetrationMarket Penetration – selling more of the
same things to more of the same customers
• Market DevelopmentMarket Development – selling more of the
same things to different customers
• Product DevelopmentProduct Development – selling new products
or services to the same customers
• DiversificationDiversification – selling new products or
services to different customers
Strategy Drives the Plan

• Market penetration is the name given to a
growth strategy where the business focuses
on selling existing products into existing
markets.
Market penetration

• A market penetration strategy is about
focusing on markets and products you know
well
• Maintain or increase the market share
• Secure dominance of market
• Driving or buy out competitors
• Increase Customer Usage
• Cash Cow – Lower Risk - Smaller Growth
Market penetration

• Market development is the name given to a
growth strategy where the business seeks to
sell its existing products into new markets.
Market development

• New geographical markets
• Product variations
• New distribution channels
• Different pricing to attract different
customers or create new market segments
• Investment – Higher Risk - Bigger Market
Market development

• Product development is the name given to a
growth strategy where a business aims to
introduce new products into existing markets
• Product to Market Fit!!
Product development

• Research & development and innovation
• Detailed insights into customer needs
• Being first to market with new product
• Investment – New Competentices – Big
Enough Market
Product development

• Diversification is the name given to the
growth strategy where a business markets
new products in new markets.
• Product to Market Fit!!
Diversification

• Research & development and innovation
• Market research and customer acquisition
• Team execution
• Skill upgrading
• Bigger Investment – Time - Highest Risk –
Biggest Rewards
Diversification

1. Money
• To fund cash flow, product, materials and resources
2. Information
• Market and product research, market trends, market
size, customer profiling, customer acquisition
3. People
• The team needed to facilitate the growth plan, to
execute the plan, to manage the costs
All Plans need Resources

Growth-Share Matrix

The Planning Process
Thinking Done
Know Why
Business Mission
Business Strategy

• 5 Step Planning Process
• Imagine – what products or services
• Dissect – data and customer feedback
• Expand – market research and tasks
• Analyse – results, information, investment
• Sell – customer acquisition, marketing, sales
IDEAS

• Develop a "strategic hypothesis" and test it
out making very small bets. Try to sell the
idea to a customer before it’s built, look for a
supplier, ask a mentor or advisor who has
some expertise in the new area.
Test the Plan

• Strengths to Leverage: Three to five key
strengths you will need to use to achieve the
plan.
• Strengths to Develop: Three to five
strengths you will need to develop to achieve
the plan.
Strategy Planning Tactics

• Business Priorities: List out the priorities
you will focus on to ThriveThrive
• Tactical Priorities: Three to five monthly
priorities that support the business priorities.
• SMART Objectives: Projects and/or tasks
that are required to accomplish the monthly
priorities.
Strategy Planning Tactics

Life is a series of investments…this is about
you deciding where to spend your time,
money and energy.
Schedule a steady rhythm of productive
meetings— quarterly, monthly, weekly
and daily. Evaluate the plan, what’s
working and what needs to be adjusted.
Establish A Rhythm for
Success

• Grounded in your Business Purpose,
Mission and Core Values, a solid business
strategy will help you develop a plan of
action and maximise your likelihood of
success in achieving your vision.
• Best Wishes to you in 2015 and beyond.
People don’t plan to fail, they
just fail to plan

Business strategy for growth

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