Strategic Consistency And Business Performance Theory And Analysis

Cover Strategic Consistency And Business Performance Theory And Analysis
Strategic Consistency And Business Performance Theory And Analysis
N Venkatraman
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The implication for marketing strategy — for example — is that on average, it is not enough simply to invest in promotional activities to the exclusion of sales force and advertising. If a business manager has decided to use marketing as a critical means to performance, all of these marketing activities require investment relative to competitors; on the other hand, if marketing is not to be used, none should be invested as it is inefficient (or, inconsistent) to invest in some and not in others.... It is imponant to recognize that the optimum pattern of function-specific investments may differ across functions, and it is the task of theory to specify the specific pattern of policies under different competitive situations. Consistency at the business level Consistency at the business level involves investing concurrently in those functions within the business unit that together support the achievement of the unit's goals. Our conceptualization of business consistency is a logical extension of functional-level consistency.

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