Developing effective strategy enables an organisation to create a direction and develop an operational scope over a three to five year period which will facilitate the organisation to sustain or gain competitive advantage in its market place. To be successful the organisation must have an understanding of the dynamics of the market place and be aware of the key drivers of the macro-environment. Being aware of its surroundings and purpose should lead the business to organise its resources uniquely and effectively to act operationally in a most effective manner.

But this process is not necessarily a key to success. Many businesses are aware of the nature of strategy and the processes of developing strategy but do not operate with uniqueness and I would argue that a major key to business success is the development of strategic uniqueness. This may develop in the form of unique product attributes, perhaps operational excellence or though superior customer service. Whatever the case, a business's directors have to ensure that they have a product or service offer that guarantees that the customer will return again, again and again, and one that will ensure that investors will gain a competitive return on their investment.

However, business success does not generally come easily. As with success in study or sport good preparation is required, practice is required and it is necessary to continuously improve. Good business development requires hard work and continuous innovation in strategic planning, operational implementation and a set of values or principles to guide the business forward. Therefore, it also has to be real. It is not about lip service. If we say that "we are a people company - developing our people for success" then we should not have high staff turnover. This does not send out an appropriate message to retained staff and other company stakeholders. Consequently, we should not operate in an arrogant or an authoritarian manner but enable our staff to work in an environment where they can express their ideas, question the elements of business development and help the company to be competitive through their innovation. Of course life is about balance, there is natural wastage and there is growth so being a people focused company does not preclude bringing new people into the business. New people bring in new ideas and different experiences but making a statement that "we are a people company" should mean being true to yourself as a business, and it should mean that the outward image of the organisation that you promote should equate to the inward identity that the organisation's people believe. Certainly, this is the case for a low cost housing provider in the UK for whom I am a board member. We believe who we say we are right across the organisation, we project that message at board level, senior operational management level and at all customer interfaces. As a result we have a hugely successful operation clearly demonstrated by the achievement of key performance objectives year after year.

Alternatively, if we say that we focus on our customers then we should not be seen to exploit the customer through reduced service nor through the increase of prices without any perceived added value. This message seems to be accepted by many football clubs in the UK as they have recently announced the freezing of admission prices for the coming football season. With growing unrest expressed about the strategic direction of such organisation's and with limited net transfer spends during the last twelve months it would be difficult to present a case for added product value to justify increased admission prices during times of recession.

If we say that we are a "low cost" provider it should not mean that we do not treat the customer with respect. Low cost organisations have to differentiate themselves in terms of the provision of products or services otherwise why would consumers use them. Critics of Ryanair, the low cost Irish airline company, will argue that the poor treatment of customers on a one to one basis will lead to the decline of the company but the company will argue that it offers a low cost product (flights) that arrive on time at their destinations more than any airline in Europe. So far they seem to have their strategic balance right. Perhaps things might change in the future and that is why continuing innovation is necessary.

Effective business strategy is about awareness of business environments, it is about the balance of providing return on investment to stakeholders and satisfying customer needs, and it is about ongoing innovation. I would also argue that it is about being true to the organisations values and strategy.

Manchester Business School (MBS) will visit Tbilisi from 29 - 31 March 2010 to host information sessions and interviews for their prestigious Full-time MBA and Specialist Masters Programmes. Ged Drugan will host an evening event on Monday 29 March to present on the Manchester Full-time MBA Programme. As part of this, he will deliver a sample MBA lecture on Strategic Management where he will elaborate on the issues discussed in this article. This event will take place at the Radisson Blu Iveria Hotel from 18.00 on Monday 29 March 2010. To book a free place, please contact Jenny Gunn at mba@mbs.ac.uk

Those interested in the Full-time MBA along with the scholarships available, or any other Specialist Masters Programmes offered by MBS, are also invited to make a personal appointment with Ged on Tuesday 30 March and Wednesday 31 March from 1000 - 1830 at the Radisson Blu Iveria Hotel, Tbilisi. Please contact Jenny Gunn at mba@mbs.ac.uk to book your appointment.

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