The Importance of Strategic Capital in a Company

The Importance of Strategic Capital in a Company

When you make a strategic plan, there are many aspects to consider and many perspectives to consider in order for that plan to meet its objectives with success. And one of those perspectives is the strategic capital.

When we talk about strategic capital, we refer to the shareholders, and also to the financial structure and top management of the company, even to the shared values and to the very prestige of the organization. All this is critical for the development of any company for the reason that the absence of it will be an obstacle for their future.

The profile of shareholders influences decisively the investment capacity that the company must have to meet its growth needs and, of course, the long-term development of the business project that guarantees the stability and shareholder consistency, positively influencing the management of the company.

The financial structure must be balanced so as not to condition its strategy, if the equity is low its main objective would only be to survive, but if it has sufficient funds and, in addition, the company is low in debt, it will have more development possibilities than if it has a high indebtedness.

On the other hand, the quality of top management, its experience in the sector, its leadership, its technical training, the optimum management of the people and its ability to be connected with the mission and vision of the company are also fundamental. It is needed to transfer this connection to the rest of the company in benefit of the decided and shared strategy for strategic capital, allowing to walk in alignment to reach the corporate objectives.

The corporate values that are expressed in so many websites and dossiers of many companies will only become a reality if they are internalized in the top management and are being lived, expressed, shared by all the people of the company and, in the day to day of their work, they are reflected in the behaviors and actions of the daily task and, above all, they must be perceived and even lived by the clients.

The strategic prestige also influences the strategic capital, a prestige that the company does not have in itself, but it is given and recognized by the market and is the result of its ‘being’ and, above all, of its ‘ doing well’ over time. This strategic capital is a fundamental perspective so that, any company, can face a consistent and sustainable development and future with confidence.

The current business environment, increasingly dynamic and affected by the processes of constant innovation in industries and markets, require a more detailed analysis of the abundant information that is generated day by day for a more efficient decision making, creating the strategic capital for the company.

Creation of Strategic Capital

Currently, the knowledge of the market is a basis for decision making, however, it is not enough, it is necessary to know very well our main customers, in which markets we participate and how to build value for them through the supply of our products and services.

The work of intelligence can be oriented in two approaches, the portfolio of products and portfolio of customers. In the first, we can additionally analyze the market, analyze the industry, the product and subsectors, in the case of the portfolio of customers, identify which sectors they come from and what the value is in each client’s portfolio, quantifying their profitability and contribution to the value of the company.

As we can count on this information, it is possible to establish the strategies for the consolidation of investment in product lines and in the attention of customers as well as the design of the strategies in terms of market planning and resource targeting in key products and markets. Some questions that you need to answer in greater detail are as follows;

  • Who are your current customers of higher value?
  • What will your future value customers be?
  • What are your products and/or services that provide greater value to the company?
  • Why do you think they are of greater value?
  • In what sector or industry are they located?
  • What will be your future performance?
  • What technological threats could change the conditions?

Foresight and Innovation

The identification of technological trends that will impact the main processes of the company is a fundamental strategic process for the development of the same. Their knowledge allows to evaluate the expected impacts on the life expectancy of the company and to design strategies that allow to enhance the validity of the business model of the company.

Even more important is the creation of the future of the company based on the trends and innovative capacity of the organization’s key players.

The articulation of the industrial intelligence and market work, as well as the foresight efforts in the technological impacts, allow the company to develop its strategic capital in the best possible manner for positive outcomes.

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