Alexander Rief
Head Segment Management, Corporate & Real Estate Banking Switzerland

The main points in a nutshell

Every company pursues a strategy that it believes will bring it the greatest success.

  • Whether cost leadership, differentiation strategy or niche provider: whichever choice companies make, strategic planning is a continuous process.
  • The strategy process is regularly repeated and usually comprises four stages: analysis, strategy formulation, strategy implementation, and monitoring and adjustment.
  • You don’t have to answer strategic questions on your own; it can be advantageous to rely on expert opinions.

Regularly review your corporate strategy

Every company has a strategy. This is the plan that it believes will bring it the greatest success. Strategies can vary greatly. Some companies strive to be the most cost-effective providers on the market. Others hope to achieve high sales through distinctive products and brand reputation. Still others seek their fortune in niche markets, i.e. small markets with very specific needs.

Whether cost leadership, differentiation strategy or niche provider, the executive board only chooses its corporate strategy after a lengthy process. And whatever the choice, it is only a temporary decision because strategic planning is a continuous process rather than a one-time event.

If market conditions or company resources change, the strategy must be adapted flexibly on an ongoing basis. For example, retailers may be forced to respond to online competitors with digital business models. In addition to technological disruptions, macroeconomic developments, industry trends or regulatory changes may require a new strategy. This adaptation to new developments usually takes place in several stages.

Strategy process

The graphic shows the process of analysis, strategy formulation, strategy implementation and monitoring and adjustment.

Strategic planning from concept to implementation and monitoring

The regularly repeated strategy process usually comprises four stages:

  • Analysis: First, an inventory is taken. Where does the company stand in the market? Companies analyze the current situation using up-to-date company and customer data, available resources, existing competitors and their market activities.
  • Strategy formulation: With an eye to the future, companies choose a market position they want to achieve (target state). They define goals that meet the SMART criteria (specific, measurable, achievable, realistic and time-bound) as closely as possible.  
  • Strategy implementation: In an action plan (roadmap), companies determine the measures the business units should take to achieve the strategic goals. They prioritize certain measures by setting a timeline and milestones. This guide also defines responsibilities and allocates resources that are available for implementation.
  • Control and adaptation: Companies use key performance indicators (KPIs) to measure whether the new path they have embarked upon is leading them in the desired direction. The metrics track changes in sales, profits and other success factors, such as earnings before interest and taxes (EBIT) and return on investment (ROI). They form a quantitative set of data for making targeted adjustments to the ongoing strategy process.

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Ten strategic questions for corporate development

In everyday business life, theory is less important than practice. It is important to know the strategic principles and concepts, but this knowledge only becomes valuable when implemented in the company. Ten questions facilitate this transfer. They help to define a corporate strategy and put it into practice.

Our tip: To find company-specific answers to these questions, take regular breaks from your day-to-day business. Break off from your usual routines and take the time to think about the future of your company. A little distance is useful for thinking about strategic options.

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Discuss strategic issues with UBS

Are you unsure how to finance your future plans, arrange the succession or sell your company? You don’t have to answer strategic questions like these alone. UBS advisors support many corporate clients who often face the same challenges. They will talk to you on an equal footing and make suggestions as to what might be the most sensible strategy in your specific case. As a bank, we also help entrepreneurs and business leaders to implement these plans. If further contacts are required, UBS provides the necessary support from its extensive internal and external network.

Conclusion: corporate strategy – planned well in advance

Whether cost leadership, differentiation strategy or niche provider, companies choose their corporate strategy only following a long development process.

  • The underlying strategic planning is a continuous process.
  • This usually comprises four stages: analysis, strategy formulation, strategy implementation and monitoring and adjustment.
  • The importance of defining a corporate strategy and putting it into practice should not be underestimated – take the necessary time and distance yourself from day-to-day business.

It can be advantageous to seek expert opinions and make use of their internal and external networks.

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