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services in it, exploiting your organizational distinctiveness (strengths) at a price that will return the optimum level of pro t, while making continuous improvements to those parts of the business that don t work well (weaknesses), in the face of competition and other unfavourable external factors (threats) This seems straightforward in a period of slow, steady growth However, strategy erodes quickly in rapidly changing times because yesterday s competitive strengths that successfully underpinned past performance cannot be automatically expected to do the same today and tomorrow Customers, competitors and other exogenous factors will not allow it New unique or special strengths have to be found and existing ones revamped simultaneously to ensure that pro tability is maintained or increased Business strategy is a total concept embracing every function in the business: customers, products or services, research and development, marketing, production, purchasing, logistics, operations, administration, personnel, information systems and nance.

So they anticipate a presumed value for the ongoing relationship and the potential for additional sales and collaborate with buyers to nd an equitable balance Granted, not all buyers are willing to negotiate this way, but you should be clear in your own mind about how much you value the relationship instead of digging in your heels over mundane contract matters One services seller, for example, brought a large sale to the brink of collapse over a disagreement about how the seller would bill out-of-pocket expenses which made up less than 10 percent of the contract value The seller s stubbornness had several unintended consequences First, it delayed approval of the agreement and caused the client to go back over every other clause of the proposed contract And it led the client to wonder how this seller would behave when something really important was on the line.

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Most of all, it is concerned with the way these functions are brought together to generate pro ts: the sharper your focus on the needs of your customers and the closer the alignment of your organization with these needs, the higher the rate of pro t Customers have choices: they can buy from you, from a competitor, or, if they prefer, defer their purchase temporarily or even permanently Competitive action and reaction are always at work, whether implicitly or explicitly Thus customer behaviour is fundamental to business strategy It is a moving target, continually changing its shape and composition And as a result, it is not easily in uenced in the short run Business strategy does not have to be written in a business plan to exist.

All businesses have a strategy, even if it is implicit, since they have: Customers to whom they sell and markets in which they compete Products or services that they sell in these markets Organizational resources that are deployed to make these sales Financial resources that underpin all this activity..

It s possible to become xated on the wrong points in the heat of contract discussions Periodically, pause to analyze all aspects of value, including that of the relationship, and decide if your negotiating posture is helping or hurting you 4 Negotiate as an Equal You always want to keep your eyes on the prize, but don t cave in just to get the contract signed Some sellers are too willing to let a buyer chip away at their end of the deal, hoping the sale will still be worthwhile in the end This often happens when the buyer s status or leverage in the relationship intimidates you Regardless of the title, position, or perceived bargaining power of your buyer, you ll strike a better long-term deal if you put aside.

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