For the current strategic issues of lubricating companies, the words “dilemma,” “lost,” and “misunderstanding” are everywhere; there are also many solutions, such as “breakthrough”, “transition”, and “rebirth”. However, these are all at the image level. We must analyze in more depth what the core factors of the lubricating oil business strategy are in order to propose suitable and effective solutions.

To do this, we must return to the fundamentals of corporate strategy. We must first understand what the strategy is. Starting from the reality of lubricant companies, I believe that corporate strategy is a capability system that can guide the company's continuous growth, which consists of three elements: starting point, goal, and action.

The "Sick Root" of Lubricating Oil Business Strategy - Ignoring the Strategic Starting Point.

Many problems in the strategy of lubricant companies can be attributed to two major types: the first is "a swarm of bees." What do you do, what do I do, there is no difference in the "doing" strategic level; the second is "homogenization." How do you do it? How do I do it? There is no difference in the "how to do" strategy.

The real “root cause” of these two types of strategic problems lies in the fact that lubricant companies generally ignore strategic starting points.

Any enterprise is a unity of commonality and individuality. The strategy pursues uniqueness. It must attach great importance to the individuality of the enterprise in order to design an effective strategy.

How to highlight individuality in corporate strategic design?

The key lies in grasping the starting point of corporate strategy, because the strategic starting point of any company at a certain point is the existence of differentiation. Only by fully recognizing the difference in strategic starting point can we determine the strategic goal that is suitable for ourselves; only the difference between the starting point and the target. Based on this, we can design and implement unique strategic actions.

The so-called strategic starting point has two meanings: First, it refers to the starting point of the strategic entity itself, that is, the overall situation of the enterprise when designing and implementing a certain strategy; second, it is the business starting point for the enterprise to implement a certain strategy, such as the goal in the diversification strategy. Product series, target area and main business in the national business strategy.

The "common problem" of the lubricating oil business strategy is difficult to implement.

Many lubricating oil companies have a strategy that is goal-oriented, that is, setting a goal first and then designing and implementing a number of strategic actions to achieve this goal. Lubricating oil companies value the target elements of their corporate strategy and deserve full recognition. However, there are also some problems, such as:

(1) The target itself does not have the main characteristics of an effective goal: clarity, attainability, determinacy, specificity, and timeliness;

(2) The goal has not been implemented, implemented and implemented, and it has evolved into a “slogan” or “slogan” that has little or no relation with the company and its strategic actions.

(3) The target changes frequently and lacks the necessary stability.

One of the fundamental methods to solve these problems is to attach great importance to the strategic starting point and its status and role in the overall strategic capability system. First, choose the strategic goals that are appropriate to them and make this goal clear. It is best to meet other characteristics. Then, through strategic principles, the target will be implemented in all concrete strategic actions. Finally, the necessary stability of the target must be maintained.

The "epidemic" of the lubricating oil business strategy - act for action.

Strategic actions are the actions of an enterprise from the starting point to the goal. It is one of the elements of the company's strategy, but some scholars regard it as the whole of the strategy. There are not a few cases of action for the lubricant company's strategic practice. The main performance "Brand" for branding, promotion for promotion, execution for execution, etc.

The root cause of this epidemic lies in the ignorance of the strategic starting point of the lubricant companies, and the incompatibility of the targets with the companies, and it is therefore difficult to correctly handle the relationship between the starting point, the target, and the action.

In fact, for lubricant companies, the strategic starting point is fundamental. It determines the selection of targets, the starting point, and determines the principles and contents of the actions. Strategic actions are practical, and it depends not only on the starting point. And goals, but also to coordinate and promote all factors in the course of action.

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September 04, 2024