Why is strategy important? Strategy allows a company to become opportunistic. Strategy can be used to test the business theory. Drucker identifies five certainities: 1. The collaspe of the birthrate in the developed world. The implications are great political and economic turbulence; stating, it is unlikely developed countries will maintain stable political and economical environments. This will mean the definition of retirement will change - Drucker proposes incentives to keep older knowledge workers employee as advantageous; and also states, with less children, there will be a repopulation crisis. The consequence is less young people working and more older people retiring. 2. Shifts are occuring in disposal wealth. Drucker clarifies that the fastest growing industry, historically, has been financial services and not technology. This group is interested in maintaining retirement financial assets. Traditional Financial services realized this swing and built infrastructure capturing vast amounts of disposable income. However, major corporate loans or major public offerings of corporate securities did not grow. The impact was large financal services have overexpanded. The only industry sector that has been growing is the mid-sized business. 3. Institutes will need to define what performance means. In short, shareholders depend on their retirement economic investments. The emphasis on performance providing financial benefits for the shareholder will be valued. 4. Competive performance is measure globally. Design, marketing, and financial performance will be measured against global standards. Turbulence and financial collaspe will plague countries whose policies have failed. Examples given were Japan and Mexico 5. Growing incongruncies between the political and economic environment will increase. Drucker states political incongruncies must not interfere with economic realities.[Learn More ...]

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