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  • Writer's pictureMiguel Argüello Oviedo

Reasons to have a strategy

This entry is based on an entry I wrote a couple of years ago. If you want to read it in full, click here (Spanish version)

Why is it important to have a strategy? And what kind of strategy do I mean?

We must understand that a company is an extremely dynamic entity and that it changes, evolves and transforms its strategies in order to adapt, get ahead or stay in the market. That dynamism that companies have is faster than the creation of laws or reforms of the existing ones that can occur in our countries in the Central American region.

A company could save a lot if it has been created a legal strategy for the business it is creating since its foundation. There are few companies I know do it. However; it is not only to create a strategy in its beginnings, but one for each specific case that occurs as a result of a particular situation.

  1. Creating a good legal strategy under the circumstances granted by the laws is essential.

  2. A legal strategy must contain an analysis of the sector or activity that the company will develop in the light of the laws of the country. For now, this is only done with important sectors in matters of large investments: energy, telecommunications, free zones and exporters. The latter is because these sectors usually have special laws that regulate them. But other activities such as; a franchise of a brand like Chanel that intends to establish itself in a country in the Central American region must create a legal strategy linked to labor, tax, corporate and a legal contingency plan on how to act in the face of complaints protected by laws that protect the consumer (guarantees, service, promotions, etc.)

  3. The strategy will become part of the company's development plan and will help draw the policies and vital lines for the development of its activity, but the most important thing is that it will position the company in such a way that it will be able to have greater control of external and even internal events..

Let's not expect to create the perfect strategy, but the one that is good for every company and case. One case can be resolved without the need for a strategy, but others do not work this way and require our attention in planning how action will be taken depending on the scenarios, the environment, and the laws.

A strategy on time saves the company.



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