## C-R-T Model: A New Experimental Guide to the World of Business Strategies

Strategy is a subtle thing. Sometimes it’s just a lifeless and useless document. Sometimes a plan leading to failure. Sometimes a concept that creates prosperity for decades. Hundreds of thick books have been written, yet a simple new entrepreneur still doesn’t quite understand what to guide by when it comes to strategy.

# How to Build a Powerful Business Strategy

The ancients had no internet, so there was time for calm and attentive observation of people’s lives. A person’s life was analyzed through chains of causality—the infamous karma. Action by action, consequence by consequence, a person wove their fate. The same thing happens with organizations and enterprises.

Let’s ground the wisdom of the ancients in the context of business strategies. We’ll introduce the concept of “Gunas.” Gunas are states of the human soul, and there are three: Satva (consciousness), Rajas (passion), and Tamas (ignorance). We exist in one of these states at any given moment. The longer we live and act in ignorance, the more Tamas we embody. The longer we live in passion, the more Rajas we display. The more we exhibit consciousness, the more Satva we show.

Assume that these same nouns and adjectives can be applied to our subject of consideration—the business as a whole, a functioning entity entwined in chains of cause and effect, whose strategy is defined and evaluated by its actions.

In describing strategies, I will rely on specific examples from life, anonymizing them to avoid offending anyone. It might surprise some readers how much companies in different sectors can vary based on their chosen strategy. To better integrate the concept of Gunas into strategic formation, we’ll apply well-known strategy evaluation concepts where appropriate—Michael Porter’s model (cost focus differentiation), BCG Matrix (stars, cows, dogs, question marks), and Adizes’ Life Cycle Model.

This is not a moralistic piece. It’s merely a diagnostic tool that will help smart entrepreneurs apply the highlighted traits to their businesses, predicting the lifespan and possible development trajectory of their ventures.

# Satva and S-Strategies

Monetary Category: Old Money

Characteristics:

• Genuine desire to improve the world (a business strives to solve an objective market problem and benefit its consumers)
• Possession of a hard-to-replicate advantage (the business does something better than others)
• Focus on long-term goals (the business aims to live and operate for a long time)

Examples:

• A medical device manufacturing company
• A major producer of high-quality and affordable food
• A systems integrator implementing breakthrough technologies
• A service holding producing quality and accessible cosmetic products and providing services to citizens
• A company producing and selling recycled products to clean the city of waste

Business Construction Model for S-Strategy:

# Rajas and R-Strategies

Monetary Category: Fast Money

Characteristics:

• Sincere desire to be the best in their niche and earn substantial profits (a business strives to become the most renowned and wealthy company among its peers)
• Possession of an advantage (the business does something well)
• Focus on medium-term goals (the business aims to live and operate until it becomes the best and very large)

Examples:

• A company copying medical devices at a slightly lower cost than competitors
• Small, medium, or large producers of high-quality and expensive food
• A systems integrator implementing the highest margin technologies with a broad market
• A chain of beauty salons or food retail stores
• A company producing popular plastic toys

Business Construction Model for R-Strategy:

Priorities in Making Key Strategic Decisions:

• Product margin
• Market size
• Loyalty of the core team
• Principles of the company’s market actions under R-Strategy
• Achieve competitive advantage
• Ensure the fastest possible sales growth
• Aim for scalability
• Preserve know-how
• Engage through benefits

Operational Implementation of Strategy:

• Cost leadership across a broad range
• Cost leadership on a focus
• Differentiation on a focus

Main Risks of Business Failure:

• Aggressive, dumping-based, faster companies with S-Strategy
• More intelligent company with S-Strategy
• Technological revolution in the industry
• Economic (and other) wars
• Premature aging as per Adizes
• Aristocratism as per Adizes

# Tamas and T-Strategies

Monetary Category: Feed Money

Characteristics:

• Genuine desire for specific material benefits (the business, represented by its founder, seeks to earn a certain amount of money or solve a particular material issue)
• Possession of competence (the business does something well)
• Focus on short-term goals (the business aims to live and operate until it achieves the founder’s goals, with an unclear future thereafter)

Examples:

• A small offline or online store

• A repair workshop

• A beauty salon

• A company reselling raw materials

• Business Construction Model for T-Strategy:

  

Priorities in Making Key Strategic Decisions:

• Presence of product margin
• Availability of demand
• Ability to delegate tasks to the team
• Principles of the company’s market actions under T-Strategy
• Achieve acceptable revenue
• Ensure growth with minimal effort
• Aim for stability
• Conserve
• Engage through convenience

Operational Implementation of Strategy:

• Focus
• Cost leadership on a focus

Main Risks of Business Failure:

• More effective competitor
• New product in the category
• Weak and demotivated team
• Founder’s demise as per Adizes
• Premature death as per Adizes
• Aristocratism as per Adizes
• Absorption or market defeat by a company with S-Strategy

# Starting Your Business Self-Diagnosis

To do this, you can use our Business Maturity Wheel Model from Co-Founder Ai and color-code or check the relevant cells. By doing this, you’ll see which category—S, R, or T—your company most closely resembles. More importantly, you’ll identify the most frequent risks of business degradation and the immediate tasks for your business development in the form of empty cells.

Fortunately, there’s more than enough information available for self-development.

Business Maturity Wheel:

# Instead of a Conclusion

In our business world, as strange as it may sound, the most conscious prevails. Because consciousness is not just intellect. It’s the ability to properly integrate into the world and balance a sincere desire to make the world better.

Wishing you all the best in your entrepreneurial journey.

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