Strategy is what happens when an organization formulates a wise response to changing conditions outside of the organization.
A key element of an effective strategy is making sure to pay attention to the right external conditions. For the most part, they fall into one of four categories.
When you are formulating and implementing a strategic initiative, make sure that you are considering this checklist of potential external variables:
- The customers, who insure your organization’s survival.
- The regulatory environment, where policy can alter the competitive landscape in a moment.
- Complementary businesses, such as vendors, upon whom your organization relies for products, goods, and services.
- Competitors, who may anticipate the future first themselves or, on the other hand, may be making mistakes your organization must avoid.