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.

Using sponsorship to increase brand awareness
Infiniti logo

Learn how Infiniti used strategy theory to thrive in the automotive industry by downloading our premium case study.

Using the marketing mix to drive change
Parcelforce Worldwide logo

Discover how Parcelforce Worldwide employed strategy theory to prosper in the logistics industry by downloading our premium case study.

Leading a revolution in banking
Intelligent finance logo

Find out how Intelligent finance employed strategy theory to prosper in the financial services industry by downloading our premium case study.

Meeting customers' needs
Travis Perkins logo

Find out how Travis Perkins used strategy theory to thrive in the construction industry by downloading our premium case study.

Live, breathe and wear passion
Diesel logo

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