A strategy enables the owner to ensure that day-to-day decisions fit in with the long-term interests of the Company. Without a strategy, decisions made today could have a negative impact on future results.
A strategy encourages everyone to work together to achieve common goals. A strategy must be communicated to all employees, irrespective whether the employee services external or internal customers.
A Business Plan is prepared to interest someone to invest or buy the Company's existing business. It is also prepared for new business, a proposed operation with a joint venture partner, grant from government authority, financing from financial institution and possibly as a tender document to carry out a contract.
A Business Plan enables an owner to put thoughts into writing, including how well managed the Company is and the future growth prospects.
Restructuring at the corporate or shareholding level. It is intended to achieve the objectives set out in the Company's strategy & business plan and those of its shareholders.
Restructuring at the corporate level is intended to monitor the performance of employees, create motivation with a view of rewarding performance. It is also use to "ring-fence" business with a higher risk profile or grow products on a geographical basis.
Restructuring at the shareholding level is intended to maximise returns to shareholders.
When a Company decided to grow its busines through joint venture, the identification and selection of a joint venture partner is crucial.
SWOT analysis of both the Company and the joint venture partner will enable a clear idea of what can be achieved or still need to be a "work-in-progress" post merger.
To crystalize the objective of the joint venture decision, a time-frame should be implemented so as to maximize efforts and enable walkaway when things are not working as planned.
To negotiate, the owner of a Company must have at its disposal all the relevant points to present itself in a positive angle.
An understanding of its weakness is also critical, as it enables a better appreciation of the extent it can push its position.
The owner also need to know the intention of the prospective investor, the operation, the financial standing and the synergy that the prospective investor will derive from its investment in the Company in order to organize its negotiating points.
A well planned Project Management scheduling would provide owner with the comfort and confidence that all critical matters are adequately considered.
In addition, it enables the owner & employees to continue to focus on their business activities and be in attendance only when needed.
Time is of the essence in any transaction, hence delay should be kept to a minimum.