process is presented in an easy-to-understand format, even for the most
creative minds. If you’ve enjoyed reading this book so far, you will
discover that this chapter will be no less interesting than the rest of the
book.What is a business strategy model?
A Business Strategy Model in simple terms is a graphical representation of
the elements, processes, plans, tactics and all the features that make up the
direction that a company follows in executing its activities. It comprises
features that are identified after the assessment of several factors. These
features are also some of the elements that would normally be found in a
Business Plan of a start-up company. However, the factors are designed to be
useful to both old and new companies. These factors include external envi-
ronmentalcharacteristics such as the consumer and competitive markets, the
economic and political climate and the socio-cultural economy among several
others.
Additional features shown in the business strategy model could be related
to the microenvironment of the business. The microenvironment normally
addresses issues that affect investors and shareholders, customers and
employees as well as alliances, associations, suppliers and distributors. This
level also comprises a competitor analysis and an evaluation of the overall
sector trends.
An additional analysis required in developing business models is related to
the internal environment.At this level, a company evaluates its in-house
competences and capabilities. This evaluation also involves the assessment of
the company’s human resource capabilities, its internal business processes, its
financial shape and its overall strengths and weaknesses. These factors deter-
mine the potential execution viability of the chosen strategies.
Other aspects that are considered in developing business strategy models
are the tools and techniques used in the implementation and control of the
strategies; and the indicators that will be used to measure the company’s
performance, post-implementation.
The analysis stage of the business strategy model development forms the
first part of the exercise. This is followed by the identification of the strategic
issues and challenges bordering on the operations of the business. These
issues include problems that the company and/or sector currently face or are
likely to face in the future. They could also include sector-wide influences or
issues related specifically to the company in question.
Since every company is unique and every sector is different, it is not possi-
ble to find two identical business models. The levels of business environ-
ments analysed in business strategy modelling are shown in Figure 9.1.
Business models act as guides in the planning and development stages of268
luxury fashion branding