ABSTRACT
Strategic decisions by definition will have a major impact on the company. Setting the direction for large portions of the company’s assets, they include issues such as what measurement system or systems should be used to focus activity, what strategy to use in entering new markets and when to expand the factory. The decision to use the theory of constraints (TOC) including the TOC Thinking Process and TOC-based information system is definitely a strategic decision. However, for the purposes of this text, strategic decisions will be addressed in the following context:
• Market segmentation • Company growth • Long-term planning • Recession proofing the company
I. MARKET SEGMENTATION
Entering new markets can be risky for any company. Many who make an attempt lose a great deal of money in the undertaking. If it were not for the entrepreneurial spirit that drives some people to take risks, new ventures would probably be rare. This kind of activity is a natural part of the business world and must continue. So reducing the risk of loss for new ventures while maximizing profit is vitally important.
