Chapter 18. Strategy, Positioning, and Focusing

Strategy

Strategy is the route chosen by management to reach its goal. The strategy of an organization should address the following questions:

  • Which market is the organization competing in?

  • What are the core competencies of the organization, and how can they be conserved?

  • What are the weaknesses and the threats of the organization, and how can the organization defend itself against them?

  • What is the strike plan for the company?

  • What products and services are sold by the organization and where should they be positioned in the market?

  • What are the pricing, quality, and focusing policies of the organization?

  • What is the proper growth rate for the company?

  • What are the required investments?

  • What capabilities does the company have that form sustainable competitive advantages?

  • What are the dimensions of differentiation for the company's products and services against the competition?

  • Where should the constraint of the company be located?

  • What should be the capital structure of the company?

  • What should be the business and the organization structures of the company?

The answers to these questions actually shape the functional strategies of the organization in marketing, sales, finance, technology, information systems, operations, logistics, quality, human resources, and risk management.

This chapter presents several angles of strategy that can significantly increase value for shareholders. We focus on certain value drivers that may change or improve company ...

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