April 2023 - Strategy FINAL - Flipbook - Page 6
Developing your Business Strategy
Sean Simpson
Chief Strategy Officer
PIPESTONE
What is a “Business Strategy”
or a “Strategic Plan” for my
business? It may be best to
start with what is “not” strategy.
Strategy is not operational
best practices. Strategy is not a
forecast. Strategy is not simply
a plan to make more money this
year.
Business strategy is a longterm plan of action that an
organization takes to achieve its
goals and objectives. It outlines
how the organization will use its
resources to create a competitive
advantage and increase its
value to its stakeholders. Being
different from your competitors is
the core of a successful strategy.
Business strategy is crucial for the
success of any organization as it
helps to align the resources and
efforts of the organization toward
a common goal. Implicit in these
statements is the fact that a
strategy must be communicated
throughout an organization.
A successful business strategy
comprises several elements,
including the organization’s
mission and vision, its
competitive environment, its
resources and capabilities, and its
strategic goals and objectives.
Mission and Vision: The
mission and vision of an
organization define its purpose
and guide its decision-making.
6
PIPESTONE JOURNAL
Sean Simpson has been with PIPESTONE for a number of years,
serving as General Counsel and has recently transitioned into the role
of Strategy Officer. Sean also serves on the Board of Directors for
Pipestone Holdings, LLC.
The mission is your north star, the
vision is your map to the vision.
The competitive environment
refers to the external factors that
affect the organization’s ability
to compete in the market. The
resources and capabilities of
an organization are the internal
factors that determine its ability
to achieve its goals – do I have
the right team, do I have the right
systems, equipment, and assets?
Analyzing external and
internal environment: Creating
a successful business strategy
requires careful analysis of
the organization’s external
and internal environment.
This involves understanding
the market dynamics,
the competition, and the
organization’s strengths and
weaknesses. Based on this
analysis, the organization can
identify its core competencies
and competitive advantage.
It can then develop a strategy
that leverages these strengths
and capabilities to achieve its
strategic goals. Understanding
and leveraging your uniqueness
(your competitive advantage) is
the key to a successful strategy.
What do I do differently from my
competitor that will increase a
consumer’s willingness to pay for
my product or service?
Implementation: The
implementation of a
business strategy requires
a clear understanding of
the organizational structure,
processes, and culture.
A strategic plan must be
communicated effectively
to all stakeholders, and the
organization’s structure and
processes should be aligned
to support the strategy. This
involves creating a culture of
accountability and measuring
progress toward strategic
goals. Without a system to
measure success and maintain
accountability, there is no need
for a strategic plan.
What is Business Strategy for
PIPESTONE
At PIPESTONE, our mission is
“Helping Farmers Today Create
the Farms of Tomorrow.” It is
extremely important that our
strategy aligns with this Mission.
If we are offering services that
ultimately result a competitive
advantage for the farmer - it does
no good for the farmers we work
for.
Over the past few years,
PIPESTONE has placed a focus
on partnerships as a competitive
advantage for farmers.