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pursuit of perfection many products reach the marketplace “too late and
too expensive”. Conversely, of course, they may be the guarantors of the
future of the company. The right questions asked at the right time can
encourage the “boffins” to become business brains.

Resource Those assets of a company that are used strategically and tac-
tically to delight customers at a profit. People are not a resource of a com-
pany, but their commitment, loyalty, knowledge, skills and behaviours
often are.

S

Sales force People whose views should always be listened to, but never
acted on without verification. All right I am being a little unfair, but only
a little. Reducing all prices at a stroke will not usually bring in more or
better business. The sales force should be encouraged to identify the most
profitable opportunities, to keep abreast of the most important emergent
needs and desires of customers and to communicate this information along
with all the supportive evidence. They should then be provided with all the
tools that they need to win the most profitable business.

Sector A carefully defined part of the market with needs and desires that
you have, or can readily acquire, the competencies and strengths to fulfill.

Segment A specified part of the total market with needs or desires that
are satisfied by your existing product or service.

Share capital Used to be the money that was invested in a company by
its risk-taking shareholders. A growing burden of legal claims initiated by
disappointed stockholders increasingly suggest that risk is a long way from
their expectations.

Star A relatively new product in a high growth market that is showing
considerable sales growth, but requires serious investment to achieve its
full potential.

Strategic alliance An agreement between two companies to co-operate,
sharing knowledge and sometimes resources to achieve a pre-determined
set of business objectives that are to their mutual advantage.

Strategic management The effective application of resources to
achieve long-term objectives. This implies the equally effective use of
resources today in order to survive to enjoy the long term. Arie de Geus has
shown that companies that are successful over long periods tend to be
frugal in the short term. It is essential for any company in an ever-faster
moving business environment to ensure that they do well enough today
not merely to survive, but also to build a fund to finance future changes of
direction as the markets change.

242 Key management questions