Showing papers in "Journal of Business Strategy in 1983"
TL;DR: In an economy of giant, divisionalized corporations, corporate social responsibility is almost impossible to achieve as discussed by the authors. Yet, the author contends, corporations must achieve it if our society and economy are to continue and to flourish.
Abstract: In an economy of giant, divisionalized corporations, corporate social responsibility is almost impossible to achieve. Yet, the author contends, corporations must achieve it if our society and economy are to continue and to flourish.
395 citations
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TL;DR: In this paper, the authors examined the general trends and macroeconomic conditions that affect business failures and found that the number of business failures in this country is growing at an alarming rate.
Abstract: The number of business failures in this country is growing at an alarming rate. While many experts have looked at the specific reasons why particular companies fail, few have examined the general trends and macroeconomic conditions that affect business failures. The author has, and has come to some surprising conclusions.
106 citations
TL;DR: Product innovation can run the gamut from new products and product line extensions to product improvements and style changes as mentioned in this paper, and business managers need to understand this entire spectrum of product innovation in order to be able to compete effectively in the marketplace.
Abstract: Product innovation can run the gamut from new products and product‐line extensions to product improvements and style changes. Business managers need to understand this entire spectrum of product innovation in order to be able to compete effectively in the marketplace.
105 citations
TL;DR: In this article, the authors argue that earnings per share and book ROI no longer do the job, and that a new shareholder value approach is needed to evaluate strategic plans in rational economic terms.
Abstract: Strategic plans need to be evaluated in rational economic terms. Earnings per share and book ROI no longer do the job. What is needed, the author contends, is a new shareholder value approach.
80 citations
TL;DR: Following World War II, American corporations enjoyed twenty-five years of prosperity and technological dominance as mentioned in this paper. But that has changed dramatically in recent times. Management has to rekindle innovation and creativity, say the authors, who give a blueprint that will help strategic planning live up to its expectations.
Abstract: Following World War II, American corporations enjoyed twenty‐five years of prosperity and technological dominance. That has changed dramatically in recent times. Management has to rekindle innovation and creativity, say the authors, who give a blueprint that will help strategic planning live up to its expectations.
66 citations
TL;DR: In this paper, the authors assess the four different types of possible vertical integration and weigh the merits of each of them, and propose a diversification strategy based on the four types.
Abstract: Vertical integration is often one of the first diversification strategies that firms consider. To choose the right strategy, companies must assess the four different types of possible integration and weigh the merits of each.
65 citations
TL;DR: The growing complexity and interdependence of the business environment argues for a new concept of strategy, and companies must begin to view strategy from a collectivistic perspective.
Abstract: Up until now, strategic planning has been done primarily at the business unit and corporate levels. The growing complexity and interdependence of the business environment argues for a new concept of strategy. Companies must begin to view strategy from a collectivistic perspective. Only by collective action will companies be able to meet the challenges ahead.
47 citations
TL;DR: The next generation of managers will have to look at the technical, political, and cultural systems operative within their organizations in order to succeed in this environment.
Abstract: Organizations today face major, discontinuous change that makes strategic management more difficult and more complex than ever. To succeed in this environment, companies need to look at the technical, political, and cultural systems operative within their organizations.
46 citations
TL;DR: Pressures are forcing boards of directors to take a more effective role in articulating the mission and strategies of the firm, allocating appropriate resources, and ensuring coherent appraisals of those strategies.
Abstract: Boards of directors have been pressed over the past decade to improve their monitoring of a company's economic performance. In addition, legal actions are forcing them to become overseers of what management does, both in delivering returns to investors and in obeying the various laws to which corporations are subject. But most importantly, boards are being charged with the long‐term responsiveness of the corporation to its economic environment and society. It is these pressures that require the board to take a more effective role in articulating the mission and strategies of the firm, allocating appropriate resources, and ensuring coherent appraisals of those strategies.
43 citations
TL;DR: In this paper, the authors provide a model of stock price performance, examine the link to business unit profitability, and suggest some steps to improve your company's market valuation. But, they do not address why stock prices are important and what is a high or low price.
Abstract: The price of a company's stock affects many aspects of its operations, ranging from access to capital to executive compensation to acquisition strategy. Unfortunately, too few managers understand why stock prices are important and what is a high or low price. The authors provide a model of stock price performance, examine the link to business unit profitability, and suggest some steps to improve your company's market valuation.
43 citations
TL;DR: The authors find that the model is still valid and extremely valuable and that some of the critics' charges may be justified.
Abstract: Perhaps no strategic planning model has generated the controversy that PIMS has. Although some of the critics' charges may be justified, the authors find that the model is still valid and extremely valuable.
TL;DR: Can the Manville Corporation and International Harvester stave off bankruptcy? Both have low Z −scores in the bankruptcy predictor model, demonstrating danger for Manville, and little chance of survival in its present form for Harvest unless it receives government assistance as mentioned in this paper.
Abstract: Can the Manville Corporation and International Harvester stave off bankruptcy? Both have low Z‐scores in the bankruptcy predictor model, demonstrating danger for Manville, and little chance of survival in its present form for Harvester unless it receives government assistance.
TL;DR: In this article, strategic planning for clusters of businesses is the missing and vital ingredient for success in the future, and the authors propose a strategy for cluster-of-business clustering.
Abstract: U.S. corporations have been paying attention to strategic planning at the line‐of‐business level. However, something more is needed. According to the authors, strategic planning for clusters of businesses is the missing and vital ingredient for success in the future.
TL;DR: The notion of “decision support systems” (DSS) has entered the lexicon of strategic management in recent years and the research literature has also begun to address the topic of strategic DSS.
Abstract: The notion of “decision support systems” (DSS) has entered the lexicon of strategic management in recent years. Practitioner‐oriented planning journals now carry numerous advertisements for commercially available “decision support systems.” The research literature has also begun to address the topic of strategic DSS (e.g.,[15, 24]).
TL;DR: The answer lies not in rejecting the various theories and models, but in creatively combining usage of them, which may only give part of the picture, but together they can clarify the most complex strategy.
Abstract: The past decade has seen widespread adoption of specific strategy analysis methods ranging from PIMS to portfolio management. Recently, disenchantment has set in. The answer lies not in rejecting the various theories and models, but in creatively combining usage of them. Each may only give part of the picture, but together they can clarify even the most complex strategy.
TL;DR: The United States' economic experience has closely paralleled that of Britain's economic experience and if both countries are to return to controlled prosperity, changes are needed in the business world and in academia as discussed by the authors.
Abstract: The United States' economic experience has closely paralleled that of Britain. If both countries are to return to controlled prosperity, changes are needed in the business world and in academia. If those changes don't happen, the downward spiral toward depression may well accelerate.
TL;DR: In this paper, the authors argue that too many executives ignore the rules of the road when it comes to new product development and commercialization, and explain why companies manage the process poorly.
Abstract: Why, when we know so much about new‐product development and commercialization, do so many companies manage the process poorly? The author contends it's because too many executives ignore the rules of the road.
TL;DR: For decades, America has been the major source of industrial innovation. But that has begun to change as other countries challenge America's supremacy as discussed by the authors. And in order to counter these new cradles of innovation around the world, U.S. enterprises face some difficult strategic and operating decisions.
Abstract: For decades, America has been the major source of industrial innovation. In recent years, that has begun to change as other countries challenge America's supremacy. In order to counter these new cradles of innovation around the world, U.S. enterprises face some difficult strategic and operating decisions.
TL;DR: In this paper, a new approach called value performance plans (VPS) is proposed to motivate executives to make decisions consistent with the long-term interests of their companies. But it is not suitable for large companies.
Abstract: Executive compensation plans have come under increasing criticism. A new approach—value performance plans—offers a promising way to motivate executives to make decisions consistent with the long‐term interests of their companies.
TL;DR: The structure of an organization is no longer viewed as a rigid definition of hierarchical levels and interrelationships among different groups.
Abstract: The structure of an organization is no longer viewed as a rigid definition of hierarchical levels and interrelationships among different groups. Managers use the organizational design process as a fundamental tool for implementing and communicating the strategic direction selected for the firm.
TL;DR: In this paper, a customer is willing to pay the vendor who knows how to produce a product or service that the customer is either unable or unwilling to produce himself, based on a set of constraints.
Abstract: Technology, particularly when defined broadly as “know‐how,” is the raison d'etre of most businesses. The customer is willing to pay the vendor who knows how to produce a product or service that the customer is either unable or unwilling to produce himself.
TL;DR: In this article, the authors argue that the acquisitions process must shift emphasis away from financial performance to competitive dynamics and must be part of an overall ongoing strategic planning thrust, which can be an effective way to improve the competitive position of a company.
Abstract: Acquisitions can be an effective way to improve the competitive position of a company. However, the acquisitions process must shift emphasis away from financial performance to competitive dynamics and must be part of an overall ongoing strategic planning thrust.
TL;DR: Following a decade of economic turmoil, the climate for international business in the 1980s should be more favorable due to changes in the oil, currency, and labor markets as discussed by the authors, and those companies that recognize the growing trend toward globalization and position themselves to take advantage of it will emerge successful in the coming decade.
Abstract: Following a decade of economic turmoil, the climate for international business in the 1980s should be more favorable due to changes in the oil, currency, and labor markets. Those companies that recognize the growing trend toward globalization and position themselves to take advantage of it will emerge successful in the coming decade.
TL;DR: A spate of articles that vociferously attacks business strategy as a failure in practice, a useless concept, and a fad or current management vogue that is destined to pass into eclipse by the ascendance of a new “buzz word” has recently appeared in Fortune, Harpers, and other popular periodicals.
Abstract: A spate of articles that vociferously attacks business strategy as a failure in practice, a useless concept, and a fad or current management vogue that is destined to pass into eclipse by the ascendance of a new “buzz word” has recently appeared in Fortune, Harpers, and other popular periodicals.
TL;DR: A wave of competitively aggressive moves originating in the operations function is a striking new phenomenon of the 1980s as discussed by the authors, which are creating an arsenal of strategic weapons that are essentially physical.
Abstract: An emerging wave of competitively aggressive moves originating in the operations function is a striking new phenomenon of the 1980s. These moves are creating an arsenal of strategic weapons that are essentially physical. While the weapons are numerous, their common feature is that they are derived from better deployment and management of physical assets.
TL;DR: According to a recent report prepared by A.C. Nielsen Company, no-name brand shares in the top fifty product categories in which they are strongest range from 4 to 10 percent of the category sales volumes as mentioned in this paper.
Abstract: The growing consumer demand for, and acceptance of, so‐called no‐name brands of a variety of food, as well as nonfood, products—from cooking oil to cotton swabs, tomato juice to toilet tissue, brownie mix to beauty aids, and liquor to laundry detergent—is a significant development in retailing. No‐name brands have captured about 2 percent of the total grocery sales in the United States in just three years . According to a recent report prepared by A.C. Nielsen Company, no‐name brand shares in the top fifty product categories in which they are strongest range from 4 to 10 percent of the category sales volumes; this is in spite of the fact that no‐name brands have not yet achieved the broad levels of retail distribution enjoyed by branded products . In fact, the share of no‐name brands is as high as 16 percent in certain product categories based on the sales volumes of only those retail outlets that carry them. Contrary to industry expectations, the growth of no‐name brands appears to be a persistent market phenomenon rather than a passing fad. Indeed, retail chains such as Ralph's on the west coast and Jewel in the midwest now have “generic” aisles in their stores.
AT&T1
TL;DR: The current engagement time for a massive nuclear exchange of intercontinental missiles between the United States and the U.S.A. is fifteen minutes as mentioned in this paper, and approximately half of that time would elapse before detection and communication reaches the national command center (the President), leaving seven or eight minutes for national decision and reaction.
Abstract: One of the most fundamental and dramatic changes since World War II in the conduct of strategic war has been the intense compression of time. Whereas in World War II it took the United States several years to train, transport, and launch major forces against an enemy, the present engagement time for a massive nuclear exchange of intercontinental missiles between the United States and the U.S.S.R. is fifteen minutes. Approximately half of that time would elapse before detection and communication reaches the national command center (the President), leaving seven or eight minutes for national decision and reaction. This highly centralized decision and reaction process has been among the major changes since World War II in our conduct of strategic warfare. It is based on the gathering together of information, on a real‐time basis, into a national command center where it can be evaluated and used by strategic decisionmakers.
TL;DR: If the authors are to preserve their present free‐enterprise system, then they must work quickly to develop their corporate boards into effective operating units, and this subject is of deep and current concern to the whole corporate community.
Abstract: Boards of directors have been the subject of growing concern over the past decade. Today, pressures are building for increased reform within the corporate boardroom. An apparent increase in director responsibilities and liabilities makes this subject an issue of deep and current concern to the whole corporate community. Such varied sources as the SEC, the courts, Ralph Nader, Professor Stone, Authur Goldberg, and others have made suggestions for reform ranging from federal chartering to placing outside and public directors on boards, with separate staffs to serve these outside board members. If we are to preserve our present free‐enterprise system, then we must work quickly to develop our corporate boards into effective operating units.
TL;DR: The techniques and models of risk analysis can help managers chart a course through today's increasing uncertainty and improve their organization's strengths without taking undue risks.
Abstract: Managers are often asked to consolidate and improve their organization's strengths without taking undue risks. The techniques and models of risk analysis can help managers chart a course through today's increasing uncertainty.
TL;DR: In many U.S. companies, decisions of importance must conform to volumes of policy manuals and be ratified by increasing numbers of specialist staff people, particularly legal and accounting staff as mentioned in this paper.
Abstract: As a result of massive doses of external constraints on business, the past two decades have seen a trend in many U.S. companies from aggressive, tough‐minded fast movers, with confident independent middle managers, to much more procedure‐bound and uncertain or slow‐acting bureaucracies. Decisions of importance must now conform to volumes of policy manuals and be ratified by increasing numbers of specialist staff people, particularly legal and accounting staff. Clearly this bureaucratic strangulation leaves much to be desired. To hamstring middle management by imposing layer on layer of caveats and internal “regulations,” and by requiring that their decisions be ratified by burgeoning hierarchies of staff specialists, serves only to slow managers' response times, destroy their initiative, and demotivate those that have any aggressiveness at all. Equally clearly, for a company's middle managers to build and maintain momentum they need to be able to act autonomously and confidently, yet at the same time there is a need for them to act in ways that are appropriate for the overall company they represent.