The Key Attributes Required for Success
by MaestriFirst, successful companies have skilled people at all levels inside the company, including (1) leaders who develop and articulate sound strategic visions; (2) managers who make value-adding decisions, design ef?cient business processes, and train and motivate work forces; and (3) a capable work force willing to implement the company’s strategies and tactics.
Second, successful companies have strong relationships with groups that are outside the company. For example, successful companies develop win-win relationships with suppliers, who deliver high-quality materials on time and at a reasonable cost. A related trend is the rapid growth in relationships with third-party outsourcers, who provide high-quality services and products at a relatively low cost. This is particularly true in the areas of information technology and logistics. Successful companies also develop strong relationships with their customers, leading to repeat sales, higher pro?t margins, and lower customer acquisition costs.
Third, successful companies have suf?cient capital to execute their plans and support their operations. For example, most growing companies must purchase land, buildings, equipment, and materials. To make these purchases, companies can reinvest a portion of their earnings, but most must also raise additional funds externally, by some combination of selling stock or borrowing from banks and other creditors.
Just as a stool needs all three legs to stand, a successful company must have all three attributes: skilled people, strong external relationships, and suf?cient capital.
Taken From : Five-Minute MBA – Corporate Finance
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