Refocus your business for improved performance

Abstract

Purpose

Many companies find that they have widely differing levels of profitability and success in different parts of their business. There are a range of well‐established accounting tools to quantify the variability in performance but managers still have difficulty taking action: perhaps dropping one loss‐making product line will negatively impact other parts of the business; perhaps a large customer has low margins but still helps to absorb fixed overheads. The purpose of this paper is to offer business leaders a way out of this dilemma.

Design/methodology/approach

Introduces the framework of strategic market position (SMP) which allows managers to understand the linkages and boundaries between different parts of their business and to take needed actions around variations in performance. The central case study is C.H. Guenther & Son, a regional flour milling and food products company based in San Antonio, Texas.

Findings

Describes how C.H. Guenther applied the principles of SMP to refocus their business – with dramatic improvements in operating performance.

Originality/value

The way in which the case company reached a position to make adjustments to its sales and marketing priorities and arrived at a strategic prescription to follow thereafter, could be applicable to other companies.

Citation

Jackson, S.E. (2007), "Refocus your business for improved performance", Journal of Business Strategy, Vol. 28 No. 2, pp. 8-10. https://doi.org/10.1108/02756660710732594