Cá nhân và các tổ chức Lý do tổ chức nói chung được hình thành là do tiềm năng tồn tại để đạt được nhiều hơn như một thực thể hơn là có thể trên mức độ cá nhân. | 90 BUILD FRAMEWORK FOUNDATION Product sales price Cost of goods sold .60 .80 Profit .40 .20 Profit margin . . Both Company X and Company Y sell the same product at the same price . However Company X s cost of goods sold is lower than Company Y s resulting in a higher profit margin or result. Now consider the same two firms except at a different point in time after the price for the product has fallen 15 . Product sales price Cost of goods sold .85 .85 .60 .80 Profit .25 .05 Profit margin . . Company X s profit margin is reduced from 40 to about 29 a reduction of less than 28 while Company Y s profit margin is reduced from 20 to about 6 a 70 reduction. So in this example Company X has achieved both a higher result and more stable result than its competitor Company Y. Investors and purchasers of businesses generally like this type of performance and reward organizations that are able to achieve it with considerably higher values. Determine Niche Positions and Goals 91 How does an organization achieve better and more stable results than competition Certainly close attention to cash flow is part of it. But from a strategic point of view the niche is created when the organization achieves a position in its market that draws customers and clients and other stakeholders of importance to its doors. In practice such positions generally require an organization to develop and focus a number of its capabilities in one or more areas of the market that are strategically significant . that determine the outcome of competition in the marketplace . Determining appropriate niche positions requires an organization and management team that not only understands its own strengths and limitations but also has a strong working knowledge of the external environment including customer motivations and loyalties and competitive strategies. Once these are assembled see for example the output from the exercises in Chapter 3 Define Factors for Success and Identify Barriers to .
