STRATEGIC OBJECTIVES 127
Resource requirements
Your strategy will require resources, including some or all of the following:
investment and working capital;
direction, management, and operating and support personnel;
premises, plant, machinery, equipment, etc.;
raw materials, components, finished goods;
professional services.
Look back at what you have (see Chapter 4) and list the additional resources that you
might need. You will need to confirm the feasibility of obtaining any additional resources.
If you think you can get them, draw up a timetable for bringing them on board. If the
requirements are unreasonable, it is time to revisit your strategy.
Strategic objectives
So, you have decided on a strategy. Now it is time to specify strategic objectives. These
identify what your strategy has to lead you towards and what your plans have to achieve.
If you found setting a strategy exhausting, you will be relieved that deriving the objec-
tives is rather easy. Simply identify the key things that you need to achieve to make your
strategy a success, and write them down. Remember to make these objectives as specific
and measurable as possible – try to include target dates, and quantities or values to be
achieved or milestones to reach.
It might assist your thinking if you consider that objectives are tempered by constraints
and responsibilities. Constraints might be an upper limit on the amount of working capital
available, restrictive practices imposed by a unionised workforce, an inefficient corporate
infrastructure that will take time to change, or other internal factors. Responsibilities are
external restrictions such as government regulations that affect the way that you can oper-
ate. Both might include your corporate values discussed in Chapter 4.
Do not understate your objectives. Stretch yourself and your organisation. It is
remarkable how clearly defined objectives ‘happen’ , however tough they are.
128 CHAPTER 6 THE CORE OF YOUR PLAN
TETRYLUS BUSINESS PLAN Doc 20110136 Business strategy
Business strategy
Overview
The market analysis on page 10 indicates that we can take advantage
of an unexploited market niche – automated safety systems for large
petroleum companies operating in Asia-Pacific. The main countries …
We were the first to spot the gap in the market and our exclusive
licence for the identification badge locks out the main competitors. We
estimate that there will be a 15-month time lag before they are in a po-
sition to compete … By which time we will have achieved critical mass
and the market will be unattractive to them for the reasons explained
… We will also use the revenue from the first sales to develop …
Adaptive strategy
In essence, our strategy is to:
1. Work with ISPs to enable fast deployment of our system using
their relationships and resources. We have signed exclusive
agreements with …
2. Pursue the strategic sales indicated in Table 16, column C that
will take us to critical mass most rapidly and lock out the major
competitors.
3. Use revenue for the initial sales to erect barriers to entry as
shown in …
4. …
Objectives
The strategic objectives that we have set in relation to this strategy
are as follows:
1.
Annual sales volumes in the range shown in Table 16, column D.
2. Completion of modifications to hardware as described in Table
17 by the dates indicated.
3. Completion of modifications to software as described in Table
17 by the dates indicated.
4. …
Rewards
The range of possible returns from pursuing this strategy is illus-
trated in Table 18 …
Our pilot sales have ensured that we will achieve the first two sales on
the list in Table 16, column C. The third sale will give us control of 55%
of our target market, given that these users are also service providers
to other oil companies and will require them to use our system for
compatibility …
Copyright © 2011 TETRYLUS Inc Page 12 of 20
Figure 6.4 Strategy in the plan
Domain
Sustained
competitive
advantage
Strategy
Quantified
objectives
Risks, rewards
… and reassurance
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