Consistency of Assumptions

The assumptions on which the theoretical basis of your business is built must be consistent with each other. Assumptions about the external environment, mission, and key competencies should align with each other. Marks and Spencer recognized that after World War I, a new external environment emerged – a multitude of buyers for quality, stylish, and affordable goods such as women's underwear, blouses, and stockings. By the mid-1920s, four relatives who had turned cheap bazaars into a powerful network of various stores could have been satisfied with the substantial growth of their wealth. Instead, they decided to rethink the mission of their business. Marks and Spencer decided that their business was not limited to retail. It was a social revolution. The partners decided not to limit themselves to a successful chain of stores; they decided to create a specialized network. They looked broader and included manufacturers in their business, helping many get started. Thus, Marks and Spencer formed key competencies that corresponded to the new external environment and mission. TIP OF THE DAY Does your organization's mission align with the external environment? Do your organization's key competencies align with its mission?