Strategic and Operating Economics of the Business

Abstract

When implementing strategy it is useful to consider the impact of decisions that are about to be taken above the strategic and operating economics of the business. It is also worthwhile to consider how the economics of the business can influence implementation decisions. For example, the decision to increase shopping facilities by opening branches for business on Sundays and on public holidays may enhance the utilisation of the assets or indeed may require additional expenditures that lower the returns to the business. The business should question the motives of such moves. Is the move seen as a strategic initiative to add value to the customer offer or is it a competitive reaction? Furthermore, what can the business expect of its sales volume profile: will it increase or perhaps will it merely be spread across the increased hours of opening?