The Goal 2

This book is a sequel to “The Goal” which had introduced the concepts of Theory of Constraints (TOC) and shown its application in a manufacturing scenario.

In this book, UniCo, a diversified conglomerate has decided to sell three loss making companies which are under its fold. Alex Rego, now the Executive Vice President of UniCO has been given the responsibility to turn around these companies to fetch an attractive return when they are sold. He applies TOC concepts and techniques to Sales, Marketing, Inventory Control and Business Strategy and comes out with flying colours in this challenging task.

 The three entities for a company's existence are make money now as well as in the future, provide a secure and satisfying environment for employees now as well as in the future and provide satisfaction to the market now as well as in the future. No business strategy should violate any of the above entities.

Never build a strategy based on market forecasts, since their accuracy is not guaranteed. Start with developing a competitive edge through products and services which eliminates the pain-points of the market. Having established the competitive edge, move immediately to find ways to segment the market. Enter into segments for which probability of many of the companies dropping off during the same time period is very small.

Through this book, Goldratt teaches us Thinking Process techniques for solving problems using Current Reality Tree, which incorporates UnDesirable Effects (UDEs) and then a Future Reality Tree. He also teaches us how to make use of a Transition Tree to move from Current Reality to Future Reality .In addition techniques of Vendor Managed Inventory is also presented.