Johnson and Scholes have suggested a six-step approach to achieving competitive advantage through the use of CSFs. NSL can use this approach to effectively apply the identified CSFs to gain competitive advantage in the Shito sector. The following detailed discussion examines how best NSL can deploy CSFs to its advantage.

1. Identify the critical success factors (CSFs) that are key for profitability:
   Mr. Martinson has taken the first step of identifying the company’s CSFs, which include lasting customer satisfaction, consistent taste, unrivaled quality, operational efficiency, and compliance with regulatory requirements.
2. Identify the critical competencies necessary to achieve superior performance:
   NSL management has not yet clearly identified the critical competencies needed for each CSF. This step involves determining the necessary abilities to excel, such as strict cost control for maintaining low prices or fast production cycles to ensure prompt delivery.
3. Develop the critical competence:
   NSL should develop the required competencies to gain a competitive advantage. This includes continuous improvement in operations, quality management, and customer service.
4. Measure performance against competitors:
   NSL should benchmark its performance against key competitors to identify areas for improvement and maintain its competitive edge.
5. Improve competencies where necessary:
   Continuous monitoring and improvement of NSL’s competencies are crucial to maintaining a superior position in the market.
6. Ensure sustainable competitive advantage:
   By consistently applying and improving its critical success factors, NSL can maintain a sustainable competitive advantage in the highly competitive Shito market.

(Marks allocation: 6 steps well explained @ 1.67 marks each = 10 marks)