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  • Leonard Brecken

Matching Profits With Strategy

One of the first steps in our 5 Step Process for Higher Profits is to match what a business' Strategy is (ie competitive advantage, plan to market etc) with its profits. Meaning many times we find that a company's Business Strategy DOES NOT match with its profits. An indicator that the business isn't efficiently investing its resources efficiently.

Recently, I was at lunch with a colleague when we began talking about tasty burger joints around Charlotte and one in Waxhaw came up in mind that he said has the best burgers he ever tasted. The analyst in me explore what that is as after all a burger is a burger and there are many places around town who cook them. Then he said some of it was actually tied to the fact that they grind their own beef on site which is probably rather unique around Charlotte (ie competitive advantage). But when I went to their website there was no mention of this! Without knowing there financials I have to believe they are leaving much on the table profit wise by the creating a marketing campaign around this. Further I wonder if burgers are the best selling product on the menu. THIS DEMONSTRATES THAT FREQUENTLY BUSINESS STRATEGY DOES NOT PROFITABILITY.

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