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actually dep-ends that if planining , orgnainzing , leading , controlling are not smothly run then strategy should be revised accordind to your above four funtion
It all depends thru which phase of business cycle our business is running..
1. If the business is going in upward trend we all need to strategise in expansion & standardizing the processes and systems..
2. If the business is going in the saturated level we need to strategise in terms of taking business plans
3. If the business is going thru down trend we have to strategise in terms of market penetration / manpower / Price and focus on product.
Strategy is simply defining:
- Where are you standing now (point A)
- Where are you going (point B)
- and How to go from A to B (Road Map)
Mainly the last one should be subject to revision all the time. The Road map will be affected by external as well as internal factors that may deviate the company from reaching B. Therefore it should be revised continuesly in order to keep on track.
WHEN IT IS NOT WORKING===== NOT GIVING THE REQUIRED RESULTS ===== WHEN YOU ARE LOOSING THE STATS MONTHLY ======= WHEN THE GROWTH TREND IS DOWNWARD ======= TIME IS TO SIT DOWN , TAKE LONG BREATH & REVISE YOURSELF ,,,& YOUR STRATEGY
Firstly , It depends upon the type of company. A company which is working in a fast paced environment (Please refer example1 ) like that of Software development, Web application , Mobile devices. the Strategy can be revised even within a year . Whereas a manufacturing , Production companies may have a different approach . Their strategy can be revised once every3 or5 years because this involves lot of investment and development of physical assets (Please refer example2) . There can also be companies which deliver FMCG's or consumer goods , The strategy can typically be revised within a period of1 to3 years (Please refer Example3)
Example1 : Microsoft's(Nokia) launch of Android based Mobiles . Recent times Nokia has been fast losing its share of mobile market in various countries , Thanks to Apple , Samsung , Xiaomi and various other local companies in various countries who were sourcing Chinese phones. Microsoft decided to enter into the market in a hurry , they revised their strategy and in the same hurry they stopped doing it after the intiative did not provide microsofy any gain in the market and also they were deviating from their strengths and start to rely on others (Here andriod , in turn Google) . Another example could be Facebook acquiring Whatapp. From Social media they were expanding their portfolio.
Example2: A company like Honda launching its Diesel portfolio in Asian market , They were not interested in the compact segment / Diesel cars thinking customers would prefer their silent gasoline counterparts . After the intiation of Strategy it took3-5 years for development and putting up a plant that can manufacture these cars . Also it is difficult to change strategy in between because of the amount of work and cost involved.
Typically when an organisation derives its growth strategy, it is done from the perspective of medium term to long term.The growth depends on various internal and external factors, type of industry segment, the type of market it serves and so on.At any point in time if any of the factors- internal or external factor changes that has not been factored initially and has direct impact on growth and profitability, then the organisation can look forward to realigning the strategy. This is an area were no body can actually predict the frequency of readjustment. Hope this satisfies the query
