Let’s recap the past 6 segments on business strategy and what Kepner & Tregoe call the driving force behind the strategy. Here is what we’ve covered so far:
1. Overview of the concept of driving force
2. Market driven company strategies
3. Product driven company strategies
4. Technology as a firm’s driving force
5. Methods of Sale and Distribution as the driving forces
6. Production Capability as the driving force
Today we will discuss your firm’s revenue and growth as the driving forces of its strategy.
Size or Growth of Revenue
The Amount (size) or Growth of a firm is defined as its total revenue and/or the rate of business growth as determined by appropriate and predefined sets of measures. Some organizations value size over all else and rate of growth is the method used to get there. Other companies measure only rate of growth and the resulting size is a byproduct of the growth.
Size or Growth of Revenue as the Driving Force
The Size or Growth of a firm’s revenue determines the scope of the products is offers, markets served, and geography covered based on the desire to become larger or smaller. Size or Growth is the driving force for your firm only if product and service decisions are made only to affect size or growth. If this size or growth goal is further refined to say a certain geography, then the strategy is no longer driven by size or growth. Conversely, the size/growth driven firm can introduce new products and/or services that are totally unrelated to the current offering or eliminate items from its “core” product line if it favorably affects growth or size.
It is common for a firm to start with a size/growth driven strategy and then convert to another driving force as the firm stabilizes and learns of its strengths and weaknesses.
Check here for initial post of this series, “What is Driving Your Company?”
If you like the information provided here, scroll to the bottom of the page to receive my ebook “5 Stages of the Product Lifecycle”.
Originally posted 2013-12-17 05:45:54. Republished by Blog Post Promoter