What should be your company's strategy?

What should be your company’s strategy?

One important thing for any CEO to think is:

Don’t focus on the product you are selling, but clearly focus on what is the need of the customer is. What would his ultimate happiness be. Then try to get as close it as possible. Try to satisfy his need, not sell your product.

Its not luck, page 252

Its not luck, page 271

What should be the goal of a company?

· The goal of a company should be to make money, now and in the future.

· To provide a secure and satisfying environment for employees, now and in the future.

· Provide satisfaction to the customers now and in the future.

Each of them is equally important. Whichever of the three you choose as a goal, the other two are necessary conditions to achieving it.

To develop a strategy for your company, don’t build a strategy based on market forecasts. Start with a decisive competitive edge. If the company doesn’t have a unique technology or outstanding products, then concentrate on small changes that eliminates the negatives for the market and serves the customer’s needs better.

You always need to be on the move, because the competitors will soon catch up.

When the market is down for the company, it’s the company’s fault, if it goes into losses. It has to be flexible enough to go after new products, which need almost the same resources. A good strategy for a company would be to look out for more products which need the same resources.

It’s like the cricket blaming the winter, when the ant is fed and warm.

If you want to understand this concept clearly, you need to read the book, "It's not Luck" by Goldratt. I just jotted down the points that I would need later.