The theories applied in your firm are the customs separating the business. The response to the questions of what quite a business is and why business happens are very vital in acquiring a systematic governance. In our business, we run sewing operations for canvas, sweaters and blankets. The most annoying challenge we face in our firm is how to keep finding new and unforeseen ways of creating value. And this is what has been termed as corporate theory by Zenger in his book ‘what is the theory of your firm’. In our business model, leaders draw from existing knowledge and previous experience to design a theoretical and cognitive model of the business and come up with an educated hypothesis about where they can find valuable activities, capabilities and resources.

Our current business models use foresights, insights and cross-sight. In foresight, the management uses ideas and anticipations of the industry to predict on customer perceptions, expectations and demands. The foresight is the drive to our future actions on investment, asset acquisition and partnership. In insights, the management ensures they have a profound perception of the current assets and activities of the business. With this knowledge, they are able to define that which is rare, valuable or different. For instance, our key insight is to recognize the value of the company early and a substantial investment in sewing machines and final products and use them to create unique, timeless and new characters required by new agents. In cross-sight, the management has discovered how to integrate and combine assets and business activities to increase on value.

For instance, the sewing machines which are the assets combined with sewing activities would help us increase on our final product. The management wants a successful business but they have realized that in order to achieve success in business, they have to do more than control costs and share customers. According to Ersek, echoed by Girotra & Netessine this is done from breaking the rules of the game and overturn how things have worked before.