In business discussions, the issue constantly arises: Does strategy determine tactics or is it tactics that determine strategy? Strategy always comes before tactics, just as thinking comes before doing. However, thinking can be the easy part. It’s the doing that is difficult, and so it seems.

It is a business fundamental that the strategy must be correct for the tactics to succeed. There’s no chicken-and-egg problem here. The strategy must be right first, then the tactics can support the strategy by doing things right. Excellent strategy at higher levels can sustain many tactical failures at lower levels. The converse is rarely true. Sustained tactical success—even continuous brilliant execution of tactics—seldom overcomes an inadequate strategic posture.

As I listened to the speech of Prof. Leonor Magtolis-Briones of the National College of Public Administration and Governance in UP Diliman—and also columnist of this paper—on “Fearful Forecasting for 2008?” during the 10th Philippine Association of National Advertisers (Pana) general membership meeting held recently, the assessments she gave reveal threats and opportunities. The strategic lessons learned have become a general construct to solve a variety of problems.

When action is taken without a thorough assessment of the situation, too often people begin working on the wrong things. In these circumstances, the result will be that a lot of effort is expended with no gain. Briones says: “Economic performance largely depends on how the government handles the succession of crises it must deal with. Unfortunately, the government’s explanations [on the cash gifts] to the public officials and [the explosion] that killed 11 persons and injured a hundred others remain unsatisfactory. The main issue here is governance.”

Briones highlighted the improvements in the economy, but mentioned that the growth is not enough to reach and significantly improve the lives of the people at the bottom of the economic ladder. For companies whose target market are people in the countryside, she said it is important to note that the decline in the agricultural sector will have an implication in the market’s purchasing power. Briones pointed out that in 2007—being an election year—government expenditure is quite high but the same cannot be assumed for 2008, because of the balanced budget implementation scheduled for next year.

Other social indicators presented by Briones were the poverty threshold, educational development index and health-care index. Data show that in 2003, 26 million Filipinos are living below poverty threshold and 13 percent of the population is living in extreme poverty. Education and health care are suffering as well. “All the key indicators of the quality of education in the country are down, while government spending on basic health care [is also] being neglected.” The professor then challenged those companies in health-care industry to do something about this.

She further recommended more involvement from the private sector in governance. “Governance is not just the business of the government; it is the business of all the sectors of society. If your principals play a more active role in governance and in other concerns of the country, through advertising, perhaps 2008 will not be as fearful or even fearsome.”

The concept of being victorious without engaging in conflict is fundamental to Briones’s strategic presentation. To apply this concept, it is necessary to seek victory before entering the competitive arena. Otherwise, you must fight in the hope of winning. The concept of winning before the battle applies to every situation. We so often find that the outcome has really been determined before the battle. This is expressed in the saying: “The side that wins will be the side that has already won.”

When we do not understand the underlying concepts, we do not have the ability to improve or improve properly.

Some of the most productive lines of development in science, medicine and business have been stimulated by challenging the obvious truths. For every obvious truth there appears to be an opportunity for progress, be it in science or business.

Who can argue with that? In this competitive environment, according to AC Nielsen’s director of consumer panel services Russel Adra-Hidrosollo, there are three factors that contribute to the growth in the market of products. First is the increasing concern by consumers for health, wellness and youthfulness. Consumers want products that are healthful and beneficial to them. They also want to look good and feel good, thus the proliferation of spas, water-refilling stations, and the increase in demand for body cleansing and personal paper items.

The second factor is the increasing patronage for convenience. Consumers want easy-to-use goods. And third is the consumers’ continuing need for value. Households would rather spend on essential items than on products which do not belong to the consumer basket. Moreover, consumers who cannot afford to buy even the essential items before are now able to do so because of the presence of more affordable alternatives or smaller/lower-priced packaging.

Hidrosollo’s case presentation before the Pana members underscored that these three trends will go beyond 2007. There will be continued focus on eating healthier and looking better. Consumers will need products that will make their lives easier and get their money’s worth.

In business discussions, the issue constantly arises: Does strategy determine tactics or is it tactics that determine strategy? Strategy always comes before tactics, just as thinking comes before doing. However, thinking can be the easy part. It’s the doing that is difficult, and so it seems.

Products and brands are like living things; they are born, they grow, they mature, and if nothing is done to prevent it, they grow old, decline and die.

Unfortunately, few top executives live by the maxim, “When the going gets tough, the tough gets going.” They have their own version of this old maxim. It goes like this: “When the going gets tough, find someone else to go.”

With the real-estate boom showing no signs of slowing down, comes the country’s first TV show dedicated exclusively to the real-estate industry. Philippine Realty TV, set to air this November on ANC and ANC International on TFC (The Filipino Channel), will give local and overseas Filipinos a chance to see the latest real-estate developments in the country.