Business STRATEGY = Ideas + Implementation (Corporate Development)
There is no Strategy without Implementation; no Optimization without Strategy! Strategy = develop ideas; Implementation = realising Strategy either through internal measures (Value Increase) or inorganically through M&A.
Definition:
- Strategy is exploration. It requires strategic thinking. The objective is to decide on the best option (s) (= bundle of measures) to develop future potentials for top- and bottom-lines growth (financial view).
- Strategy Implementation refers to the execution of the plans (tactics). It converts the opted strategy into the moves and actions of the organisation to achieve the objectives.
Implementation can be done in two ways:
– Realising Strategy either through internal measures. This is referred to as actions to increase the value of the business in a relatively short time period.
– Realising Strategy through executing M&A Projects (Mergers & Acquisitions), e.g. buying and or selling businesses.
The whole process is also branded as „CORPORATE DEVELOPMENT“.
The biggest mistake businesses can make is to sacrifice the long-term growth and competitive advantage to short term results. Both long-term survival and future growth can only be secured if the business executes a sustainable growth strategy.
A farmer can bring in the harvest but without ploughing the field and planting new seeds (the right seeds!) their will be no harvest in the future.
Setting the agenda on strategy, value capture and innovation.