The simple game of Monopoly (game by Electronic Arts) that I have on my Nokia N8 gives some good lessons in Strategy.

Yes, it is a game of chance since the outcomes depends on the roll of the dice. But isn’t business the same too – it is a roll of different situations – macroeconomic, competition, suppliers, etc. Most of these are unpredictable.

So, does that mean being successful in business is all luck.

Absolutely not. As in the game of Monopoly, it is a matter of choices. As the dice rolls, you have choices to make – which ones to buy, which ones to pass on. Once you have acquired properties, you need to make another set of choices – build all uniformly or focus on one. And so on.

Sounds familiar ? It is the basic decision that needs to be made in any business – focus or diversify. And it is not an easy choice. Diversification means greater chances of lower income. Slow and steady to build up your assets. Build up on only one property and the returns on investment rise exponentially with each house you build. But the chances of getting that income is lower.

Play this for a few times and the maxim of returns vs. risks comes true. Between the two choices, the focus strategy has the clear edge. Put most of your investments into a single property tends to lead to success more often. But it is risky, when you lose, you lose big.

And one other thing. Playing against the computer a few times gives you a very good idea of the opponent’s techniques. Makes it much easier to win. Two lessons – effort spent in studying the competitors will pay off. But more importantly, you need to keep constantly disrupting – otherwise, you will be studied …