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Companies must also ensure that aside from making a profit, the shareholders should also be able to acquire returns and members have to be satisfied with the company’s performance. In addition, due to the changing environment, where business organizations come and go, companies have to learn how to deal with the uncertainty and the complexity of handling a business.
According to Baden-Fuller et al. (1997), there are four Es of strategy drivers, all of which are major drives for strategic thinking and action. Organizational capacity is what gives the first E of strategy. In order to find out the capacity of an organization, it is important that the company should exert and leverage their organization’s capabilities. Business opportunity in the present situation gives the second E of strategy. In order to find out if there are business opportunities available, companies have to exploit the current market and the opportunities that it holds. The organizational at future is what represents the third E of strategy. In order to find out whether a company is able to still be around in the future, it is mandatory that the company extend and renew their organizational capabilities. Thus, product development, innovation and continuous staff training would have to be done. Business opportunities in the future represents the fourth E of strategy. In order to make sure that the company always has something to offer in the future, it is important that new market opportunities are always being explored. This way, the company would be able to establish new market niches, and gain new customers in the process.
In the business industry, there are two strategic rules that must be kept in mind in order to survive, and to allow further company growth.