Charting success: Strategically navigating the corporate landscape

In the realm of business, the saying "fail to plan, plan to fail" echoes profoundly. At the core of every successful enterprise lies a well-defined strategy that serves as a guiding light through the complexities of the corporate landscape. The significance of a comprehensive strategic plan cannot be overstated. The concept of corporate strategy emerged in the 19th century, championed by scholars such as Chandler and Ansoff who generated the orthodoxy in which they define corporate strategy as a set of techniques for managing complex businesses in dynamic environments.

Corporate strategy serves as a road map for decision-making, and it is essential in a business environment with uncertainties, where leaders are faced with choices that could impact a company's future positively or negatively. The Covid-19 pandemic has revealed that even established businesses are just three months away from being illiquid. During the first three months of the government-imposed lockdown, businesses closed, leading to job losses.

Clear plan

A robust business strategy could be a magnet for investors seeking opportunities with potential returns. It provides a clear growth plan and how shareholders' value will be maximised. A business strategy enables firms to navigate competitive markets effectively, define their unique value proposition and leverage strengths.

There is a consensus among researchers that a business is only as good as its people - in that if employees' minds and efforts are aligned to business strategy, it may translate into success. A business strategy creates ownership, accountability and synergy among employees. When employees see the bigger picture, they understand how their collective efforts contribute towards attaining the set objectives.

“You can only manage the risks you know” underscores the essence of strategy in enabling businesses to scan environments, identify risks and develop robust risk management plans. Setting priorities and outlining strategic initiatives empowers management to make informed choices about resource allocation, leading to efficient operations.

A strategic plan identifies key performance areas (KPAs) and key performance indicators (KPIs), cascaded down to individuals, enabling companies to track progress, evaluate performance and adjust where necessary. Success should not solely be measured by financial metrics, but also by fulfilling strategic objectives and creating long-term value.

Therefore, businesses of all sizes must invest in developing a business strategy and engaging employees across the board to ensure alignment, ownership, resilience and sustainable business growth.

**Nelson Matheus is a business administration doctoral candidate. He writes in his personal capacity.