This chapter attempts to put it all together. How does one develop an effective corporate strategy? It has been argued in the text from the beginning that economic thinking can be invaluable to a manager. An economic approach to thinking recognizes that every decision, while having benefits, also has costs. It is not effective strategy to be all things to all people. Decision makers must first define their positions. To whom are they selling and in what market? Who are the rivals? The most likely area for success will be in those places that add the most value. To extend this into the long run, this additional value should be very costly for rivals to imitate. This can be accomplished through a strategic audit. Next, decision makers need to see the relationship between technical production decisions and the behavior of costs. They need to understand the supply chain. Within this is the appropriate incentive system for all resources.