Final answer:
A company's strategy involves a detailed action plan focused on competition, profitability, market positioning, and product differentiation. As the company grows and the strategy shows potential for profit, investment interest can increase even from those not intimately familiar with management.
Step-by-step explanation:
The subject of the student's question is Business Strategy, primarily within the context of how a company's strategy is designed and the key objectives it aims to achieve.
The company's strategy comprises the action plan that management follows, which includes determining how to compete against rivals, achieving sustainable profitability, establishing a unique market position, and differentiating products from competitors. In building this strategy, firms must consider the actions of competitors, the political landscape, and how their strategic decisions will play out in the market.
Strategies in business, similar to strategies in chess, require an understanding of one's goals and the various ways to attain them, all while considering imperfect information and the anticipation of competitors' moves.
Additionally, as a firm becomes more established, a successful strategy will allow for an increase in investment from bondholders and shareholders, even those who are not personally familiar with the managers, due to more widely available information about company performance.