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Devise a Winning
Strategy
I
nstinctively, we know how crucial strategy is. It is one of those common
words we understand but can’t fully define or implement. Countless books
and articles have been written on the subject, and the sheer volume of literature
can lead to confusion.
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The goal of this chapter is to filter through the muddle
and take the mystery out of business strategy as we explore:
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The what and why of business strategy
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Basic premises
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Approaches to gaining competitive advantages
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Implementing your strategic plan
As you read this chapter, pause along the way and apply these strategic con-
cepts. Use them in converting your opportunity into a competitive, sustainable
Money Machine.
Entrepreneurial Strategy Defined
Let’s start from the bottom and work backward. What does strategy seek
to accomplish? The end result of strategy is SUPERIOR, SUSTAINABLE
FINANCIAL PERFORMANCE.
Superior, sustainable financial performance means your business will be
healthy and will grow in revenues, profits, and return on equity into the future.
No confusion here. The challenge comes from figuring out how to accomplish
this objective. Harvard professor Michael Porter, whose books Competitive
Strategy
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and Competitive Advantage
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have influenced more entrepreneurs and
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