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The role of the CEO is to ultimately decide on the strategy and keep people focused on it. (Often the board will try to take this over, but that's really not their job.)
Strategy essentially answers 4 questions:
1. What products will we offer and not offer?
2. What markets will we serve and not serve?
3. What will and will not be our competitive advantage? Said otherwise: How does the market we want to serve need to perceive us in order to what to do business with us?
4. What are the key capabilities we need to create the competitive advantage / perception that will lead those customers to perceive us the way they need to perceive us to that they buy our products and services.
For a full treatment of this approach read "Spitting In the Wind - A Single, Obvious Insight to Focus and Sharpen Your Strategy." Google it.
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