Creating business strategy often involves selecting a meta-strategy objective and then designing specific sub-strategies to drive that objective based on market conditions, company resources and company DNA. One of the most common meta-strategy objectives is maximizing short-term economic opportunity. While this can generate high returns on company resources, it can leave a company economically exposed […]
The Pareto Principle posits that 80% of results come from 20% of causes. While this is a generalization that certainly does not apply in many cases, marked asymmetries between causes and effects have many important business implications, from how strategy is designed to how resources are allocated. For entrepreneurs and companies, a key challenge as […]
Strategic growth is crucial for almost every firm, regardless of industry, size, and location. But what does strategic growth mean? Entering into new markets? Expanding a firm’s products and services? Increasing revenues? While growing in size is a powerful rallying force for firm management, employees, and shareholders, it also can require significant expenditures and expose […]
Business strategy is at the heart of firm competitiveness and value creation ability. Despite its importance, many entrepreneurs and companies design strategy based on inaccurate assumptions about markets or even themselves, which often causes them to get off track operationally, lose competitive strength and become trapped in inefficient patterns of resource use. To reduce strategy […]
While a great strategy can have a large impact on firm competitive position and value creation, many firms have inefficient approaches to strategy creation that do not lead to optimum returns on the use of strategy resources. This is because firms often use biased strategy formulation processes that adopt courses of action that, although sounding […]
Business strategy has historically been based on the assumption that business sectors are clearly demarcated. However, due to the disruptive power of technology and the digitalization of the global marketplace, many sector border lines have become blurred, cross-sector competition has grown and the pace of sectoral transformation has increased exponentially. As this transformation creates large […]
