Setting up a business requires a lot of planning and management. The administration doesn’t happen in a day and leaders are required to work on projects, models, people, strategy, and a lot of unforeseeable stuff to make a business work.
Global market leaders choose one or a hybrid of these models to work around. Look at a few top models:
-
Porters 5 Forces Model
The economics of industrial organization is driven by five different forces that help with the determination of competitive intensity and market attractiveness. To say the least, a market is called to be attractive when it offers industry profitability. When an industry turns to a pure competition form meaning to say, the profits for all competitors turn out to be equal or normal- then it’s an unattractive market. The competitive rivalry within an organization depends to a great extent on the bargaining power of customers, threat of new entrants, threat of substitute products, and bargaining power of suppliers.
-
Business Canvas
For the development of a new business or bolstering an existing business system, business canvas model is a robust business strategy development framework It’s a kind of a chart with various elements mentioned like value proposition, finances, customers, and infrastructure. This business strategy development framework chart helps with the alignment of activities by detailing potential trade-offs between available resources like people and infrastructure.
-
Greiner Theory for Organizational Growth Stages
An organization goes through various stages-is no new statement. Developed by Larry E. Greiner, this theory checks the problems concerned with the organizational growth and the third in the list of business strategy models framework. According to this theory for organizational growth, there comes a lot of stages and periods of evolution. To state in clear terms- five calm periods each of which culminates in crises and revolution periods. While periods of evolution must be marked by dominant management style for growth, revolutionary periods are emphasized by problems of dominant management which have to be solved long before the growth period starts.
-
Herzberg Hygiene Theory
For Analysis of Individual, Soft Aspects – There are different psychological barriers which stop people from giving their best in an organization. Yet, there are some intrinsic motivational factors which push people to do their best. Herzberg Hygiene Theory is the best business strategy development framework to understand employees. Because employee experience is imperative in business operationalization and organizational optimization. Some of the leading factors for satisfaction in an organization can be achievement, recognition, the kind of work, responsibility, advancement, and growth. Some of the leading factors for dissatisfaction in an organization can be company policy, supervision, work conditions, bad relationship with the boss, salary, bad relationship with peers, and security.
There is no single element that can be a panacea to failures and setbacks. You have to keep planning, keep improvising, keep improving, and keep succeeding. There are other business strategy models frameworks too on which various international organizations base their strategic planning.
