The Development and Application of Priority Profiles

Abstract

Strategic management research and practice suggest that consistent decision making across functional lines of a business can improve profitability. Using a survey database of 123 manufacturing firms, three unique strategies are identified in this study which reflect emphasis on different combinations of competitive priorities: customer service, high product performance, and product cost or value. A diagnostic tool called priority profiles is developed to measure the relative consistency of decisions across selling, manufacturing, and purchasing functions. Examples are included.

Citation

Dan Reid, R. and Wood, C.H. (1996), "The Development and Application of Priority Profiles", American Journal of Business, Vol. 11 No. 1, pp. 37-48. https://doi.org/10.1108/19355181199600004