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The importance of strategy
First, strategy is the direction of the enterprise. If the direction is wrong, no amount of efforts will be in vain.

Many enterprises are unwilling to spend a lot of time on strategic research and design. What will this lead to? That will lead to the deviation of your work direction. There is a saying that I believe everyone has heard: "It is not terrible not to work hard, but the terrible thing is that the direction of efforts is wrong." This sentence fully illustrates the importance of strategy. For example, some enterprises clearly know that their products are not as good as their strong competitors, but they still put all their resources into this product without thinking about how to design differentiated products. There are also companies that clearly have strong competitors within their own competition scope, but they don't believe in evil, and they have to fight to the death with strong competitors in this respect. These are living examples around us, and these phenomena are all problems of strategic planning in the final analysis. However, many enterprises rarely find reasons in the strategic direction, but only in specific tactical links, such as sales skills, human resources, financial management and so on. None of these can fundamentally solve the problems of enterprises. It can be said that these enterprises voted for the wrong doctor and asked for the wrong medicine.

Second, the strategy determines the future of the enterprise, and today's status quo is caused by the past strategy.

Strategy is different from business plan. The strategy is a plan for the next three to five years. The business plan is only a concrete plan for next year. Therefore, the strategy is forward-looking. But some enterprises will say that three years later, things are too far away, and now I can't consider things that far away, because I struggle for survival every day. Yes, this may be your present situation, but have you ever considered that it is because you are thinking about survival all day that you are still thinking about survival for several years? Because you didn't spend time and energy to prepare your core strengths and capabilities, and didn't make systematic planning and design for your foothold in the market. Finally, you will find out what you are now, what you will be like in a few years, and it is probably not as good as now, because your competitors are making strategic preparations, they will build their own competitive advantage and core competence, and will eventually beat you. Therefore, if you want to live a better life in the future, you must make systematic planning and preparation from now on, because strategy determines your future, and you must strike a balance between urgent things and preparation for the future in order to finally get rid of the increasingly urgent state.

Third, the strategy determines the operation of the company. Without strategy, operation and management will be in chaos.

When a company's strategy is clear, its positioning and specific development strategy will also be clear, so that all links of the enterprise's overall operation value chain must be systematically planned according to the company's established strategic planning direction, in order to finally reflect the company's strategic positioning and strategy. If there is no strategy to frame the scope, there will be no standards and assessment indicators for the specific work of each operation link within the enterprise, which will eventually lead to confusion in the operation pattern. In the next course, we will systematically introduce how to match the value chain links according to our own strategic planning and how to design strategic performance indicators.

Fourth, strategic planning determines the allocation and investment of company resources.

For a company, the company's resources are very limited, but the core of strategic planning is to allocate resources most efficiently and avoid waste and inefficient use of resources. If the company does not have a strategic plan, then enterprises will not have a very clear understanding of how to use resources and often put out fires everywhere. In the end, there will be no resources available in the most critical link. On the other hand, when enterprises plan their strategies systematically, they will make wise decisions for the choice of the company's competition scope based on their understanding of the internal and external environment. In this way, the problems such as "how big the market area is and how many product lines to design" are solved, so as to concentrate on using the company's resources and maximize the input-output ratio.