12.2. Strategy - Management strategies

A step forward

SWOT analysis looks at your strengths and weaknesses, and the opportunities and threats your business faces.

By focusing on the key factors affecting your business, now and in the future, a SWOT analysis provides a clear basis for examining your business performance and prospects.

The briefing covers:

• Typical strengths, weaknesses, opportunities and threats, and how to identify them.
• How to use SWOT analysis to drive your business forward.

High impact

Running any business effectively requires good decision-making, which is based on good management information.

All businesses need to carefully monitor profitability and cashflow, and use management accounts for this purpose.

But to boost profitability and cashflow you also need to understand and monitor the key 'drivers' of your business. A driver is something which has a major impact on the performance of the business.

This briefing outlines:

• How to choose key performance indicators.
• The three vital areas to monitor: sales, costs and working capital.
• How to identify key drivers for your business.
• How to present the information.

The bottom line

Cutting costs is the simplest way to improve your bottom line. Introducing a cost control system can bring immediate savings and ensure that you remain competitive in the longer term.

But cost control needs to be carefully managed. While eliminating wasteful activities is clearly beneficial, indiscriminate cost cutting can lead to falling quality and poor morale.

This briefing outlines:

• Identifying where to focus your efforts.
• Managing cost control.
• Specific cost control opportunities.
• The pitfalls.

Jump or be pushed

Many companies see the introduction of a quality assurance system as a major step forward in controlling and improving their key processes. Other companies simply react to customer demands that their suppliers should have suitable systems.

ISO 9000, the international quality system standard, provides guidance on how to run a quality system.

This briefing outlines:

• The practical benefits of using a quality system.
• How to introduce a quality system.
• How to achieve ISO 9000.

Are you measuring up?

Every business can use benchmarking. At its simplest it helps you to compare statistics and control costs. More sophisticated benchmarking looks at process design and business strategy.

Benchmarking is a process that compares your business activities to similar companies. It identifies opportunities for improvement and often provides the momentum necessary for implementing change.

This briefing outlines:

• The opportunities benchmarking offers.
• How to select benchmarking partners.
• How to use benchmarking.

Going green

We are all concerned about the environment, but most of us prefer to believe it is someone else's problem. Such complacency can be costly.

As a minimum, you must find out how environmental legislation affects your business. At the same time, being environmentally aware can lead to cost savings and give your business a significant edge over your competitors.

This briefing explains:

• Why you should be concerned about environmental issues.
• How to decide what you need to do.
• The action you can take to improve your performance.

Essential information

Filing and records management is a vital - if uninspiring - part of any business.

Information is a major element in many companies' competitive advantage, but it can only be utilised if it is available when needed.

At the same time, every business can benefit from cutting the wasted effort associated with looking for misfiled information and misplaced files. The same principles apply to both computer and paper records.

This briefing outlines:

• How to organise your business records.
• How to maintain security - and comply with the Data Protection Act.
• Archiving for long-term storage.
• How long specific records must be kept.