A sound strategy is a significant factor that determine a company’s success. However, it is not the only one. Managerial leadership and luck are also other substantial factors. Good luck is a product of a well-formulated strategy. Therefore, a sound strategy has a great potential to yield great results even though company’s performance may be average. Contrariwise, if the strategy is not appropriate to the firm, even good leadership can barely keep it on its feet Strategy is important for companies that have a wide range of choices concerning local and international operations (Tilles, 1963). Decisions concerning corporate strategy cover three dimensions: product range, vertical scope (industry value chain ), and the geographical scope (Grant
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To begin with, the current strategy will have to be evaluated to assess its viability before any changes or modifications are suggested. First, is there internal consistency within the organization? Does each policy fit into a one big picture. Does it relate to other policies within the company and the goals of the organizations as a whole. This criterion is especially important because it involves the strategic choices that will have to be addressed eventually. Second, the extent to which the company is consistent with its environment. This consistency will have to be assessed in terms of now and in the case changes happen in the future. Its price, product, and advertising policies, for instance, will have to be consistent with outside groups and forces such as governmental regulations, foreign investment regulations, interest groups, and so on (Tilles, …show more content…
Sometimes, firms go bankrupt not because they have a bad strategy but because they decided to go for a high-risk strategy. Each firm will have to decide how much risk it is willing to take to go about the business. There are some quantitative and qualitative factors that can help in assessing how much risk can be used as a basis for the strategy which are: how much resources on which the strategy is based, how long will the resources be available, and how much resourced will be committed to each business venture. If the quantities of each previously–mentioned factors increase, the risk involved in strategy will increase (Tilles,
To begin with, the current strategy will have to be evaluated to assess its viability before any changes or modifications are suggested. First, is there internal consistency within the organization? Does each policy fit into a one big picture. Does it relate to other policies within the company and the goals of the organizations as a whole. This criterion is especially important because it involves the strategic choices that will have to be addressed eventually. Second, the extent to which the company is consistent with its environment. This consistency will have to be assessed in terms of now and in the case changes happen in the future. Its price, product, and advertising policies, for instance, will have to be consistent with outside groups and forces such as governmental regulations, foreign investment regulations, interest groups, and so on (Tilles, …show more content…
Sometimes, firms go bankrupt not because they have a bad strategy but because they decided to go for a high-risk strategy. Each firm will have to decide how much risk it is willing to take to go about the business. There are some quantitative and qualitative factors that can help in assessing how much risk can be used as a basis for the strategy which are: how much resources on which the strategy is based, how long will the resources be available, and how much resourced will be committed to each business venture. If the quantities of each previously–mentioned factors increase, the risk involved in strategy will increase (Tilles,