Leibold, M.
A icle
Re ailing s a egy: The need o e ision o he adi ional
o ien a ion
Sou h A ican Jou nal o Business Managemen
P o ided in Coope a ion wi h:
Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica
Sugges ed Ci a ion: Leibold, M. (1983) : Re ailing s a egy: The need o e ision o he adi ional
o ien a ion, Sou h A ican Jou nal o Business Managemen , ISSN 2078-5976, A ican Online
Scien i ic In o ma ion Sys ems (AOSIS), Cape Town, Vol. 14, Iss. 4, pp. 161-165,
h ps://doi.o g/10.4102/sajbm. 14i4.1161
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/217842
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Re ailing
s a egy
-
The
need
o
e ision
o
he
adi ional
o ien a ion
M.
Leibold
Depa men o Business Economics, Uni e si y o S ellenbosch
The
cen al heme
o
his a icle is ha he adi ional o ien a ion
o e ailing s a egy seems inadequa e o cope wi h changing
en i onmen al eali ies
o
especially he pas decade. The adi-
ional concep
o
e ailing s a egy is analysed, and he gene al
ma ke ing s a egy na u e he eo is indica ed. The di e ence
be ween en e p ise and ma ke ing s a egy is highligh ed, and he
na u e and impo ance
o
a b oadened en e p ise s a egy
emphasis a e s essed. The la e app oach inco po a es h ee
hie a chial le els
o
s a egy o ien a ion, which lead o app op ia e
decisions ega ding he cha ac e , scope and mission o a e ail
en e p ise's ac i i ies.
S.
A .
J.
Bus. Mgm . 1983,
14:
161
-165
Die
sen ale ema
an
hie die a ikel is da die adisionele
o iEin-
asie
o kleinhandels a egie on oe eikend is om die e ande ende
omgewings eali ei e an e al die a gelope dekade e han ee .
Die
adisionele konsep an kleinhandels a egie wo d on leed,
en
die
algemene bema kings a egie-aa d daa an aangedui. Die e skil
ussen onde nemings-
en
bema kings a egie wo d oegelig,
en
die
aa d
en
belang ikheid an 'n
b eEi e
onde nemings a egie-
beklem oning wo d onde s eep. Die laasgenoemde benade ing
om a d ie hiEi a giese lakke
an
s a egie-o iEin asie, wa lei o
oepaslike beslui e aangaande die ka ak e , om ang
en
missie
an
'n kleinhandelsondememing se ak iwi ei e.
S.-A . Tydsk . Bed y sl. 1983,
14:
161
-165
D
M. Leibold
Depa men
o
Business Economics, Uni e si y
o
S ellenbosch,
P i a e Bag, S ellenbosch 7600, Republic
o
Sou h A ica
Accep ed
June
1983
In oduc ion
In he Republic
o
Sou h A ica, as in mos de eloped W es em
coun ies, he s uc u e and na u e
o
e ail ins i u ions
and
ac i i ies du ing he pas decade ha e been
in
apid ansi ion
as a esul
o
signi ican en i onmen al changes. 1 The e ail
managemen d eams and iews
o
he
1960s
and ea ly
1970s
o
au oma ic g ow h oppo uni ies o e ail en e p ises based
upon a con inually g owing economy, expanding consume
demand and e e -inc easing li ing s anda ds ha e la gely
anished. Ins ead, e ail en e p ises a e aced wi h inc easing
p essu es and p oblems, some
o
which a e:
apidly changing consume expec a ions, a i udes, li e-
s yles and buying pa e ns;
in ensi ica ion
o
e ail ade compe i ion (wi h a bewilde -
ing a ay
o
new e ail ins i u ions and me chandising
inno a ions);
inc easing con lic and concen a ion
o
powe
in
ma ke ing
channels;
high en e p ise cos s uc u es due in e alia
o
limi ed and
inc easingly expensi e esou ces;
and g owing p essu es om he p i a e and public sec o s
o
he economy (e.g., consume ism and legisla ion).
In e ail managemen he accep ance
o
change as a no mal
way
o
li e, and he assignmen
o
high p io i ies
o
de elop-
ing c ea i e adap a ions
o
change, ha e become essen ial.
These c ea i e adap a ions a e conce ned wi h a con inuous
op imizing
o
he e ail en e p ise's ela ionships wi h i s en-
i onmen , and esul om a ional planning
o
he u u e
di ec ion
o
he i m, also known as i s en e p ise s a egy.
Ma iy e aile s, wholesale s and e en manu ac u e s who
could no an icipa e
o
adap
o
new de elopmen s in he en-
i o unen ha e
been
o ced ou
o
business
o
aken o e
and
eju ena ed by o he s. A ecen example
is
ha
o
G ea e -
mans s o es.2 Usually, when economic condi ions a e
a ou able and consume demand
is
expanding apidly, he
momen um ends
o
le e en he ine icien and complacen
e ail en e p ises su i e. In ecessiona y, s agnan ,
o
slow-
expanding economic condi ions, he complacen and s a e-
gically
less
awa e e ail en e p ises quickly disappea om he
scene.
These ac s pose a speci ic and demanding challenge o
e ail-
ing i ms conce ning hei o ien a ion owa ds he concep
o
en e p ise s a egy. Resea ch conduc ed by he au ho has
e ealed ha he adi ional concep ual o ien a ion
o
e ail-
ing s a egy
is
se iously de icien o cope wi h changing en-
i o unen al eali ies,
in
ha
i
emphasizes a ma ke ing s a egy
ins ead
o
an en e p ise s a egy app oach.3
162
The
adi ional
concep
o
e alllng
s a egy
S a egy
is
he e m gi en
o
a special ype
o
plan;
i
e ol <:d
o iginally in he mili a y con ex , whe e
i
~as
~sed (and s ill
is)
o
indica e o e all plans
o
ac ion made i?.
~ew
o
he en-
i onmen ( e ain, wea he , e c.), own capabili ies
o
he plan-
ne , and cu en
and
an icipa ed compe i i e beha iou .4
The
concep
o
ac ics
is
closely ela ed
o
s a egy,
and
e e s
o
he ope a ional means
o
me hods used in implemen ing he
s a egic plan. .
Re ailing s a egy can hus be seen as a co~~ ehensi e
_plan
o
ac ion designed in iew
o
known
o
an icipa ed en i on-
men al condi ions (including compe i ion), o he pu pose
o
b inging he e ail en e p ise in o accommoda ion wi h i s
ma ke en i onmen and achie ing i s objec i es. In he con-
ex
o
sys ems easoning, his means an o ganized mo emen
and coun e -mo emen o b ing a ha monious balance be ween
he inpu and ou pu
o
he e ail managem~n sys em. _ I
is
he e o e a means whe eby he e ail en e pnse eac s ( ei he
adap i ely
o
inno a i ely)
o
he condi ions
o
he ma ke place
in o de
o
ensu e i s su i al.
The de elopmen
o
a e ailing s a egy
is
usually seen as
a wo-pa
p oces.s:
Fi s ly,
i
consis s
o
he selec ion
o
a a ge
ma ke ia he p ocess
o
ma ke segmen a ion;
and
second-
ly, he de elopmen
o
a unique e ailing
mix
composi ion.
5
Selec ion o a a ge ma ke
In
e ailing se e al ma ke oppo uni ies exis o any pa icula
en e p ise.
No
single e ail en e p ise can, howe e , hope
o
be all hings
o
all po en ial cus ome s, because
o
he wide
di e si y
o
consume needs
in
he ma ke place
and
concomi-
an e ailing ac i i ies. The p oblem hen
is
o
ind he bes
ma ke oppo uni y o which
o
s i e in he ligli
o
he en e -
p ise's objec i es, esou ces
and
abili ies,
and
en i onmen al
cons ain s (especially compe i ion), in o de
o
a ain di e en-
ial ad an age in he ma ke place. The a ge ma ke
is
selec ed
h ougli a
p oces.s
o
ma ke segmen a ion, which
is
he g oup-
ing
o
clus e ing
o
consume s acco ding
o
ela i ely homo-
geneous se s
o
demand cha ac e is ics. Examples
o
such
clus e s a e he young homemake ma ke , he do-i -you sel
ma ke , he baby ma ke , he je -se ma ke
and
he eenage-
ma ke .
Ma ke segmen a ion
is
in i sel a highly ola ile no ion
which
is
con inually subjec
o
change. The e
is
no
single, sim-
ple s a i ica ion
o
he popula ion oday as he e seemed
o
be
in ea lie decades. 6 The impo an poin , howe e ,
is
ha
e ail en e p ises a emp
o
scale down he o al ma ke op-
po uni y
o
some hing smalle , which
is
a a ge ma ke ,
and
oday o en s i e
o
de elop
an
'image'
o
cogni ion pa e n
ha ma ches he cogni ion pa e n
o
a gi en clus e
o
con-
sume s. This
is
essen ially
pa
o
he ac i i ies in ol ed in
building a s a egy o he e ail i m in o de
o
achie e di -
e en ial ad an ages.
Viewed
wi hin a e ail sys ems amewo k,
he o e all consume ma ke
is
pa
o
he uncon ollable en-
i onmen in luencing he e ail managemen sys em. This
necessi a es con inuous moni o ing, analysis, e alua ion
and
p edic ion in e ms
o
he na u e
o
consume ma ke oppo -
uni ies, i s loca ion, i s sizes,
and
i s special a ibu es.
The
e ailing mix
Once he a ge ma ke has been decided upon e ail manage-
men
need
o plan and de elop a composi e e ailing
mix,
which
is
a bundle
o
unique
and
special o e ings which he en e -
p ise p esen s
o
i ,;
a ge ma ke . The s a egic elemen s com-
~-·"-• .
, yus1n.
nea ym.
1'183, 14(4)
posing he e ailing
mix
a e he en e p ise's p ices,
i s
p oduc o
in en o y asso men s, i s p omo ional ac i i ies and i s place
o
loca ional conside a ions. Op imal sa is ac ion
o
he
con-
sume s o ming he a ge ma ke depends
on
he co ec
em-
phasis gi en
o
each
o
he mix componen s, as
well
as h ough
op imal blending
o
he componen s
o
o m a cohe en
whole.
I
is
a o al
p og ammed
e o by e ail managemen o ad-
jus he ou pu s
o
hei sys em in acco dance wi h he demands
pe cei ed in hei a ge ma ke .
Laze
and
Kelley 7
iew
he e ailing
mix
as consis ing
o
h ee
sub-mixes, as illus a ed in Figu e
1.
The
h ee sub-mixes
a e
he goods
and
se ice mix, com-
munica ions mix,
and
physical dis ibu ion mix, wi h each
in-
cluding a wide ange
o
ac i i ies unde i s classi ica ion. Some
au ho s p e e
an
expanded classi ica ion
o
he elemen s
o
he e ailing mix,
bu
essen ially all
o
hese adi ional
classi ica ions boil
down
o
he
ou p incipal i ems
o
place,
p oduc , p ice
and
p omo ion.
8
In
he same way as he e ail
en e p ise
can
a ain di e en ial ad an age h ougli ma ke
segmen a ion
and
unique a ge
ma ke
selec ion, i
is
also
possible h ougli a unique e ailing mix composi ion, o bo h.
The
abo e-men ioned o ien a ion
o
e ailing s a egy co -
esponds wi h he ma ke ing s a egy pa adigm i s p oposed
by McCa hy,
9
and
since gene ally accep ed as a amewo k
o ma ke ing s a egy decision-making.
The
eason o his
seems
o
lie in he ac
ha
he
ield
o
e ail managemen
is
iewed p edominan ly om a mac o-ma ke ing s andpoin ,
as he e ail ade o ms
pa
o
he
ma ke ing sys em
o
a
coun y. Consequen ly, mos e ailing li e a u e equa e e ail-
ing s a egy wi h ma ke ing s a egy, no ully app ecia ing ha
a e ail
m
is
a business ins i u ion in i s own igli which
should employ en e p ise s a egy hinking
o
guide
i s
ac ions.
The
di e ence be ween en e p ise
and
ma ke ing
s a egy
Explana ion
o
he di e ence be ween en e p ise and ma ke ing
s a egy
is
a complex ask because
o
he
close in e ela ion-
ships exis ing be ween hem. In ac , he di e ence
is
a om
ca ego ical,
bu
a he
one
o
o ien a ion, emphasis
o
deg ee.
Anso
10
s a es ha en e p ise s a egy
is
one
which '(a) p o-
ides a
b oad
concep
o
he
i m's business, (b) se s o h
speci ic guidelines
by
which a i m
can
conduc i s
s~ch
~
ma ke s,
and
(c) supplemen s
he
i m's objec i es wi h
deci-
sion ules which na ow he i m's selec ion p ocess o he mos
a ac i e oppo uni ies'.
11
Mos w i e s ag ee
on
ou basic
componen s
o
en e p ise s a egy: ma ke oppo uni y;
~o -
po a e compe ence
and
esou ces; pe sonal alues and aspi a-
ions
o
op
execu i es;
and
a sense
o
co po a e pu pose o
mission. When e alua ing hese ou componen s, Ko le
con-
cludes
ha
's a egic planning
is
based
upon
he key concep s
o
ma ke e olu ion
and
s a egic i . All ma ke s unde go an
e olu iona y un olding ma ked by changing cus ome needs,
echnologies, compe i o s, channels
and
laws'.
12
Abell con ~ds
ha
he en e p ise should be looking
ou
o
a 's a egic
win-
dow' moni o ing hese changes
and
assessing he equi emen s
o con inued success in he ma ke .
13
I espec i e
o
whe he
s a egy
is
seen as a concep , p ocess,
o
plan,
i
is
clea ha
en e p ise s a egy
is
conce ned wi h he i m's o e all
cha ac e , philosophy
and
pu pose. .
Ma ke ing
s a egy has been de ined as a sequence
o
d~-
sion ules which gi e a desc ip ion
o
he
ma ke ing
p ac i~
o
a company, hei
o de
and
hei iming.
14
Ma ~e mg
s a egy de elopmen , as s a ed p e iously,
is
usually
iewed
as consis ing
o
wo dis inc
and
ye in e ela ed pa s, namely
S.
A . J. Bus. Mgm .
1983,
14(4)
163
Pa king
Sales se ice
Va ie y and asso men
Cus ome se ices
C edi
P ice lines
Gua an ees and exchanges
Al e a ions and adjus men s
S o e
image
Deli e y
,Aa ke
Pe sonal selling
Ad e ising
Window displays
In e nal displays
Public ela ions 8
I.
-o~ S o e loca ion
Dis ib. cen e s
Wa ehousing
T anspo a ion
Handling goods
11
o ma '
S o e layou
Ca alogs
Telephone
sales
Fi1u e
I The e ailing
mix.
a a ge ma ke and a ma ke ing
mix.
While he en e p ise
s a egy planning p ocess
is
an ac i i y
in ol ing
manage s
ep esen ing all a eas
o
he i m, ma ke ing s a egy planning
is
seen
as a lowe -le el ac i i y, in ol ing mainly manage s
om
he ma ke ing depa men . On he o he hand,
i
is
clea
ha a good en e p ise s a egy should
be
ma ke -o ien a ed,
and
i
may
be
ha he ma ke ing depa men 's s a egic plan
may
se he one and di ec ion o he whole company. How-
e e ,
when
equa ing
ma ke ing s a egy
wi h
en e p ise
s a egy,
he
dange
o
a myopic o sho sigh ed
iew
o he
o e all
pu -
pose
and capabili ies
o
he en e p ise
is
likely
o a ise; o
ex-
ample, ma ke ing unc iona ies a e no mally inclined o
lend
g ea e weigh o ma ke ing esou ces han o o e all en e -
p ise esou ces in se ing ma ke ing
objec i es.
Because
o
hei
posi ion
in
he en e p ise's hie a chy, he ma ke ing o icials
a e
o en no capable o
iew
he en e p ise and
i s
capabili ies
in
o al
pe spec i e.
Ka z app op ia ely s a es ha 'Dealing
wi h
he
o al en e p ise p o ides
challenges
and oppo uni ies
which
do no exis in he managemen
o
a
single
pa '.
15
I
is
app op ia e, he e o e, o hink
o
an en e p ise
needing
wo
le els
o
s a egic planning - i s , o he en i e
i m
and,
second,
o each depa men (including he ma ke ing depa -
men ).
The op managemen
le el
would ocus on company-
wide
objec i es, he managemen 's
iew
o
i s
mission, and
wha
i could achie e wi h i s capabili ies aking in o accon
en i onmen al oppo uni ies and h ea s. The ma ke ing
managemen
le el
would ocus on ma ke ing objec i es and
a ge ma ke s consis en wi h he en e p ise mission and pu -
pose,
app op ia e policies and plans ega ding he
use
o
ma ke ing esou ces o achie e objec i es (mainly using he
ma ke ing mix a iables), ma ke ing o ganiza ion
design,
and
Mix
Packing
e alua ion and con ol
o
ma ke ing
ac i i ies.
I mus
be
emembe ed,
howe e ,
ha
de elopmen
o
en e p ise
s a egy
inco po a es elemen s ela ing o ma ke ing, such
as
ma ke ing's
knowledge
o
ma ke s, compe i ion, inno a ion
and ma ke s anding.
An
en e p ise
s a egy
emphasis
In
e aiUng
The concep
o
en e p ise
s a egy
has
e ol ed
only
du ing he
pas wo decades,
especially
in
esponse o he conglome a e
mo emen and con inued di e si ica ion, akeo e s and
me ge s
among companies.
Howe e ,
e en
in
undi e si ied
i ms
he
concep
o
en e p ise
s a egy
inds
applica ion,
since
i
is
being
ecognized
ha
e e y
i m
consis s
o
a ious pa s
o
elemen s
which
oge he cons i u e
i s
cha ac e o na u e.
Th ee hie a chial
le els
o
en e p ise s a egy
decision-
making can be
disce ned,
namely
co po a e, business and
unc ional.
Co po a e
s a egy
Co po a e s a egy app oaches cen e a ound he
analysis
and
de e mina ion
o
he
ypes
and na u e
o
businesses
ha
he
en e p ise should
be
in,
i.e. i he en e p ise should
accom-
moda e
a ious
business
en i ies
unde
i s
co po a e 'umb ella'
in
iew
o
en i onmen al oppo uni ies and cons ain s and
he en e p ise's objec i es and
esou ces.
I
is
ob ious ha an
en e p ise can
easily
become a
collec ion
o
di e se
and con-
using
business
in e es s,
wi h
li le common pu pose and
o e all h us , i co po a e s a egy hinking
is
no conduc ed
in
a o malized, a ional
way.
Fou
essen ial
and in e ela ed
componen s
o
such app oaches
can
be
s a ed,
namely
scope,
esou ce
deploymen s,
compe i i e ad an ages, and
syne gy:
16
164
Scope
in ol es
he
ex en
o he en e~ ise's cu ~n
business,
and
he
majo ask
is
o de e mme he ela i e
a ac i eness
o
each
o he i m's
businesses
o p esen
and u u e in es men /di es men h ough an analysis o
he
inn's
o e all
po olio. Pa
o
his
ask
is
o de e -
mine
whe he
such
in es men s/
di es men s
will
pe mi
he
i m
o
achie e
i s
o e all
objec i es,
o
iden i y
he
a ious
gap-closing
op ions open
o
he
i m,
and o iden i y and
e alua e
new
a eas
in
which
he
i m
migh
in es
i
i
can-
no
mee
i s
objec i es
h ough in es men s
in
i s
exis ing
businesses.
This
componen
is
some imes
e
e ed
o
as
he
en e p ise's
domain,
and
he
majo concep ual ools
employed
in
his
ega d
a e
po olio ma ix
analyses.
17
Thus,
e ail
i ms
such
as
Pep S o es, Edga s and
Foschini
ha e
o
con inually
e iew
hei po olio
o
business
en i ies.
-
Resou ce
deploymen s
in ol e
he
le els
and pa e ns o
he
en e p ise's
pas
and p esen esou ce and
skill
deploymen s
among
he
di e en
business
en i ies
in
i s
co -
po a e g oup,
in
o de
o
achie e
i s
objec i es and goals.
-
Compe i i e
ad an ages conce n
he
unique posi ion an
en e p ise
de elops
is-a- is
i s
compe i o s h ough
i s
pa -
e ns
o
scope
and/o
esou ce
deploymen
decisions.
-
Syne gy
conce ns
he
join
e ec s
o ad an ages ha a e
sough
om
he
en e p ise's
scope
and/o esou ce
deploymen s.
In
sum,
all
s a egy
app oaches
a
he
co po a e
le el
o he
en e p ise
cen e
a ound
scope
and
esou ce
deploymen
deci-
sions,
wi h
compe i i e
ad an ages
and
syne gy
impo an
con-
comi an conside a ions.
Business
s a egy
Business
s a egy app oaches
ocus
on
de ining
he
single
business
uni ('wha
business
am
I in?') and de e mining he
mission
(o
ole)
o
he
business.
18
De ining
he
business
includes
decisions
conce ning
•
p oduc
and
ma ke
scope:
he in e ela ed dimensions
o
which
cus ome s a e o
be
se ed,
which
cus ome
needs
a e o
be
sa is ied, and
how
cus ome
needs
a e
o
be
sa is ied.
Scope
de ines
he
ex en
o
which
a
business
pa icipa es
in
one o mo e cus ome g oups,
one
o
mo e
cus ome
needs,
and one o mo e p oduc
g oupings;
•
p oduc
and
ma ke
segmen a ion
and
di e en ia ion:
in
pa icula , whe he and
how
he
business
ecognizes
di e ences
among
cus ome s
in
e ms
o
hei
needs
and
he
ways
hey
a e sa is ied. Segmen a ion and di e en-
ia ion
de ine
how
a
business
pa icipa es along
each
o
he
h ee
scope
dimensions,
wi h
possibili ies
o
dis inc
compe ences
o
be
disce ned
and insula ion om imi a-
ion
by
compe i o s.
-De e mining
he
mission
(o
ole)
o
he
business
en ails
decisions
ega ding pe o mance expec a ions
in
e ms
o
sales
g ow h, ma ke sha e, e u n on in es men ,
ne
in-
come,
and
cash
low.
This
demands a ca e ul
analysis
o
ma ke oppo uni ies and company capabili ies,
as
well
as
a ega d
o
o e all
co po a e objec i es.
In
his
sense
he
e m
mission
means
a se o objec i es, and
decision-
making
o en
in ol es
making
explici
ade-o s among
po en ially
con lic ing
objec i es,
especially
because
objec-
i es
ega ding g ow h, ma ke sha e gain, p o i and
li-
quidi y canno
all
be
achie ed
simul aneously.
Business
de ini ion
is
he
i s
s ep
in
planning a s a egic
ma ke
app oach
o
wo
majo easons.
Fi s ly,
business
S.-A . Tydsk . Bed y sl.
1983,
14(4}
de ini ion
is
a c ea i e decision
in
i s
own
igh
ha
can
un-
damen ally a ec he heal h
o
he business.
Some
de ini ions
a e s a egically supe io o o he s, ei he
because
hey
be e
sa is y cus ome s' equi emen s, and/o
because
hey
i
he
dis inc i e
compe ence
o
he
business
pa icula ly
well,
and/o
because hey insula e he business om compe i ion.
Second-
ly,
a de ini ion
o
he business and de e mining
i s
mission
logically
p ecedes
all
o he s a egic decisions. An
assessmen
o he ela i e iabili y (a ac i eness)
o
a pa icula
de ini-
ion
is
an inpu o decision wi h espec o
mission,
i.e.
o
in-
es
in,
main ain, o wi hd aw
om
a
business,
because
speci ic
unc ional
plans
o ac ually
sa is ying
cus ome
needs
can
only
be
o mula ed once
business
scope, segmen a ion
and
di e en-
ia ion, and mission ha e
been
explici ly conside ed.
Un o una ely,
i
is
ela i ely a e o
ind
en e p ises
con-
sciously
and
explici ly
se ing
guidelines
o
i s
s a egic
ma ke
app oaches.19
Businesses
a e
s ill
o en de ined
by
acciden
a he han design, wi h each p oduc g oup o ma ke
ex en-
ion looked a p ima ily on
i s
own me i s and
no
on
he
basis
o
i s
o e all s a egic impac . Thus, ac ions shape
he
de ini-
ion a he han he de ini ion shaping ac ions.
To
make
ma -
e s
wo se,
cu en business li e a u e o e s
li le
beyond
gene al
exho a ions ha he
business
should
be
de ined
in
one
dimension o ano he . 20 Theodo e Le i
has
sugges ed
ha
i ms
should a oid 'ma ke ing myopia' .
21
This
appa en ly
im-
plies
ha
hey
should de ine hemsel es b oadly
in
e ms
o
he
needs
o
be
sa is ied
as
opposed o a pa icula
ech-
nology/ p oduc g ouping (e.g., 'we a e
in
he
con enience
needs
sa is ac ion business and no
in
he
supe ma ke
business'). Hanan has sugges ed al e na i ely ha
cus ome s
should
be
he
basis
o business de ini ion and ha
g ow h
should occu
by
asking he ques ion 'wha o he
needs
o
he
cus ome s
we
know
so
well
can
we
se e
p o i ably?'
22
None
o
hese p esc ip ions
ells
managemen
which
ac o s
should
be
conside ed
in
any
pa icula si ua ion, no a e
any
guidelines
p o ided
as
o
ei he scope o
deg ee
o
segmen a ion
and
di -
e en ia ion along dimensions o he han he one
highligh ed
by
each
au ho .
Recen ly,
howe e , a
ew
au ho s
ha e
s a ed
o
gi e
a en ion
o
his
p oblem. Fo
example,
Abell
and
Ham·
mood
sugges
ha
in
o de o de ine he
business
and
o
de e ·
mine
an
app op ia e mission, ma ke oppo uni ies
and
com-
pany capabili ies ha e
o
be
assessed, and
hey
p o ide
guidelines
in
his
ega d; hey,
as
well
as
Ho e and
Schendel,
also
p o ide guidelines/aids
o
he
de e mina ion o
co po a e
as
well
as
business
s a egy app oaches.
23
Func ional
a ea
s a egy
A he unc ional a ea
le el,
he p incipal
ocus
o
s a egy
is
on
he maximiza ion
o
esou ce p oduc i i y.
Syne gy
and
he
de elopmen
o
dis inc i e compe ences
become
he
key
s a egic
componen s,
while
scope
d ops sha ply
in
impo ance.
A
his
le el
syne gy
in ol es
he co-o dina ion and
in eg a-
ion
o
ac i i ies
wi hin a
single
unc ion.
Conclusion
The adi ional concep
o
e ailing s a egy,
wi h
i s
p edomi-
nan ma ke ing s a egy cha ac e ,
gi es
he
e ail
en e p ise
a
myopic
iew
o
i s
basic pu pose o mission, o
wha
his
pu pose o
mission
should
be.
Ins ead
o
he na ow
emphasis
on a ge ma ke and e ailing
mix
composi ion, he
concep
o
e ailing s a egy should
be
b oadened o include
an
ap-
p ecia ion
o
he en e p ise's objec i es, capabili ies,
compe i-
ion, consume ma ke oppo uni ies, and he
dis ibu i e
s uc u e.

S.
A .
J.
Bus. Mgm . 1983, 14(4)
While
he
basic
ene s o he ma ke ing
s a egy
concep
s ill
holds
in
e ailing s a egy
decision-making,
hese
should
be
elega ed
o a
lowe
o de , and
iewed
as
an
essen ial
building-
block
o s one
in
he
inal
composi ion
o
he
e ail
en e p ises's
o e all
s a egy. ln
iew
o
he
inc easing
a e
o
change
in
he
ma ke en i onmen , he
e ail
en e p ise
should
gi e
mo e
p ominence o wha
business
i
eally
is
in,
wha
business
i
should
be
in,
whe e
i
wan s
o
go,
and i
i
is
capable
o
achie e
i .
Again,
he
di e ence
in
ou look canno
be
s a ed
ca ego ical-
ly;
a he ,
i
is
a di e ence
in
emphasis.
Fo
example,
ins ead
o accep ing he
ac
ha
i
is
in
he 'supe ma ke
business'
o ' u ni u e
e ailing'
and
delinea ing
a
a ge
ma ke
and
com-
posing
an op imal e ailing
mix,
a e ail
i m
would,
using
he
b oadened en e p ise
concep
o
e ailing
s a egy,
ques ion
he
na u e and u u e
o
he
line
o
e ail
business
i
is
in.
A e
ha ing
ca e ully e alua ed he cu en and
o eseen
ma ke
en-
i onmen al changes, and aking accoun o
i s
cu en and
expec ed
u u e capabili ies, he ealii.a ion could
possibly
be
made
ha a
new
business
cha ac e
is
necessa y,
e.g., 'con e-
nience
goods' e aile o 'li ing en i onmen ' e aile ,
which
has o acqui e a uniquely di e en ia ed cha ac e
in
o de o
su i e.
Re e ences
1.
Leibold, M. Re ailing s a egy in he changing Sou h A ican
ma ke en i onmen , Unpublished D.Comm.-disse a ion, S ellen-
bosch: Uni e si y
o
S ellenbosch;
1981,
chap e s 3, 4 and
5.
2.
F iedland,
R.
Wha wen w ong a G ea e mans S o es?
Manage-
men , July 1982, p.35.
3.
Leibold, M
.•
op. ci .
4. Rachman, D.J. Re ail s a egy and s uc u e: A
managemen
ap-
p oach. Englewood Cli s, N.J.: P en ice-Hall, Inc.,
1969,
p.23.
5.
James, D.L., Walke , B.J. & E zel, M.J.
Re ailing
oday:
an
in-
oduc ion.
New
Yo k: Ha coun B ace Jo ano ich, Inc.,
1975,
p.33.
6. Schinkel, T. Mul iple Concep s: An Answe o he S uggle o
New
G ow h,
S o es,
June
1976,
p.34.
7.
Laze ,
W.
&
Kelley,
E.J. The e ailing
mix:
planning and
managemen ,
Jou nal
o
Re ailing,
ol.37, Sp ing
1961,
p.37.
8.
Gis , R.R.
Basic
e ailing:
ex
and
cases,
Second Edi ion.
New
Yo k: John
Wiley
and Sons,
Inc
.•
1971,
p.66.
165
9. McCanhy, E.J.
Basic
Ma ke ing:
A
Manage ial
app oach.
Six h
Edi ion. Homewood, Illinois: Richa d D. I win,
1978.
p.39. (Fi s
Edi ion,
1960).
10.
Anso , H.l.
Co po a e
s a egy.
New
Yo k: McG aw.Hill, Inc.,
1965,
p.96.
11.
Ibid.
12.
Ko le , P.
Ma ke ing
managemen :
analysis,
planning
and
con ol,
Founh Edi ion. Englewood Cli s, N.J.: P en ice-Hall, Inc.,
1980,
p.64.
13.
Abell, D.F. S a egic Windows,
Jou nal
o
Ma ke ing.
July
1978,
p.21.
14.
Van de Me we,
S.
& Van de Me we,
A.
Sou h
A ican
ma ke ing
s a egy:
ex
and
cases.
Cape Town: Ju a and Com-
pany, Limi ed,
1975,
p.8.
15.
Ka z, R.L.
Cases
and
concep s
in
co po a e
s a egy.
Englewood
Cli s, N.J.: P en ice-Hall, Inc.,
1970,
p.7.
I
6.
Ho e , C. W. & Schendel,
D.
S a egy
o mula ion:
analy ical
con-
cep s.
S Paul, Minneso a:
Wes
Publishing Company,
1978,
p.25.
17.
Abell, D.F. & Hammond, J.S.
S a egic
ma ke
planning.
Englewood Cli s, N.J.: P en ice-Hall, Inc.,
1979,
p.12.
18.
Thompson, A.A. J . & S ickland, A.J.
S a egy
and
policy:
con-
cep s
and
cases.
Dallas, Texas: Business Publica ions, Inc.,
1978,
pp.9-10.
19.
Abell, D.F. & Hammond, J.S.,
op.
ci ., p.396.
20.
Ibid., p.397.
21.
Le i , T. Ma ke ing Myopia. Ha .
Bus.
Re .
July-Augus ,
1960.
22.
Hanan,
M.
Reo ganize you company a ound i s ma ke . Ha .
Bus.
Re .
No embe - Decembe
1974,
p.63.
23.
Ho e , C.W. & Schendel, D.,
op.
ci .; and
Abell, D.F. & Hammond. J.S.,
op.
ci .