According to one CEO of a billion dollar corporation, HQ in US
Sales area flat last three years
Losses last two of three years
Market share declines 1.2%, through June 2019
Stock down 24% from 52 weeks ago and 35% from high in July 2019
Leftover merchandise from 2018 over $1 Billion
Latest Q3 results just meet expectations
Guidance for revenue, down
The CEO is quoted, “transition from defense to offense.”
Peter Drucker looked at companies with two lenses, existing business and innovation. The existing business should always be on offense – improving it because it funds what’s next. Innovation, the other lens, will sustain the company going forward.
Small, medium, large companies should always be on offense. Leadership should be promoting it. A difficulty with the relationship between the existing business and innovation, the existing business often suppresses innovation, entrepreneurship within the company. These need to be separated and the offensive plans unique for each. Offense should be a constant for the existing business and innovation. Otherwise, the company will experience decline as listed above.
Is it possible, if the CEO declares the offensive strategy, is it too late to overcome the current results and competition? The competition in this industry is significant. Wall Street and shareholders will learn about the effectiveness of the offensive plan and its execution.
When does a company go on offense? Answer – companies should always be on offense.