Strategy illustration Strategy theory

Criteria for judging success

There are different views about what makes a successful business. Typically success should be judged by the ability to meet objectives. Using this definition, success criteria would include:

  • high levels of sales
  • high levels of profits
  • high levels of consumer satisfaction
  • the production of high quality products
  • strong reputation
  • sustained growth.

Today the success of a business is frequently judged by its ability to achieve sustainable growth. Companies like Nestle and Cadburys Schweppes achieve sustainable growth by working towards achieving success in each of three elements of a Triple Bottom Line.

Success for these companies involves keeping their main stakeholder groupings happy e.g. by private high profits and earnings per share for shareholders, good employment prospects for employees, fair trade with suppliers, and wider community involvement.

Successful businesses

Businesses are able to establish targets in relation to each of the aspects of the bottom line e.g. increasing profit by x %, gaining employee satisfaction of y%, and minimising their environmental impact. The success of businesses can then be judged in terms of their ability to meet important targets and creating a cycle of stakeholder satisfaction.

Successful businesses take a long term rather than a short term view of success. Attaining success involves meeting objectives for a range of desirable outcomes, which create a cycle of stakeholder satisfaction.


Supporting Documents

These downloads will help to put strategy theory into context using real world examples from real businesses.

Creating a winning marketing mix
JD Sports logo

Learn how JD Sports used strategy theory to thrive in the retail industry by downloading our premium case study.

The use of social media in promotion
National Trust logo

Find out how National Trust employed strategy theory to thrive in the non-profit industry by downloading our premium case study.

Positioning the brand
Chap Stick logo

Find out how Chap Stick employed strategy theory to thrive in the healthcare industry by downloading our premium case study.

Meeting customers' needs in growth markets - online gaming
BT logo

Find out how BT employed strategy theory to prosper in the telecommunications industry by downloading our premium case study.

The use of the marketing mix in product launch
NIVEA  logo

Discover how NIVEA applied strategy theory to succeed in the manufacturing industry by downloading our premium case study.