The document outlines Chester Company's strategy to pursue an integrated approach of cost leadership and differentiation. It focused on investing conservatively during the recession through total quality management to reduce costs and increase demand. As the recession ended, Chester increased R&D investment in all products, poured money into sales budgets, and raised capacity while maintaining effects of TQM to lower costs and increase demand. A SWOT analysis identified strengths in promotional budgets, R&D, and cash position, while weaknesses included stocking out and forecasting ability. Opportunities included exploiting poorly run competitors and limiting recession effects, while threats included economic downturn and new competitors.

1. CHESTER COMPANY“A Strategy for Champions”Brandon Graviet, Christopher Lee, Dane Hockema, Greg Guillen, and Matt Hankins

2. DifferentiationCost LeadershipFocused Cost LeadershipFocused DifferentiationIntegrated Cost Leadership/ DifferentiationInitial Strategy Focus Strategy-Integrated Cost Leadership/Differentiation

3. “Conservative” to a point

4. R&D, Capacity, Forecasted Sales

5. High End-high growth potential

6. Traditional-reliable, largest market potential