Before I craft a strategy to fit my company’s situation, I would put into consideration all the external and internal situational factors and industry driving forces, the anticipated moves of rivals, my company’s competitive strengths and weaknesses. And be able to know the strategies that can get my company the competitive advantage we so desire. I can now weigh the different strategic alternatives and know the advantages and disadvantages of the most attractive strategic alternatives and to know the kind of competitive edge my company can achieve, with good resource strengths, competencies and competitive capabilities. A good lesson I learnt,is to avoid crafting a strategic plan that will be detrimental to my company’s resources and capabilities. To avoid a strategy that is against the speck of my company’s organization culture, strategies that might characterize a drastic exit or neglect the basis of the company’s preceding success. And also to consider the ten commandments for crafting successful business strategies, to enable my company achieve a long-term competitiveness and be a market leader, to maintain competitive edge, get an above average profitability. And be careful when employing aggressive moves to wrest market share away from rivals.
We talked about diversification, which ultimate purpose is to build shareholder value. Knowing that a company that has a diversified group of businesses will perform better as a single corporate parent than when it is independent, stand-alone businesses, and having in mind that the sole reason is not just to achieve results, but also to realize significant benefits for the company.
I now know better that to get into a new business, to enhance shareholder value, one must be certain that the company’s entry into the business, must pass the three test of business which is ;the attractive test, the cost-of-entry test and the better-off test.
I Understand perfectly the three forms of entrying a new business,...