Showing papers on "Strategic planning published in 1986"

Strategic Factor Markets: Expectations, Luck, and Business Strategy

Abstract: Much of the current thinking about competitive strategy focuses on ways that firms can create imperfectly competitive product markets in order to obtain greater than normal economic performance. However, the economic performance of firms does not depend simply on whether or not its strategies create such markets, but also on the cost of implementing those strategies. Clearly, if the cost of strategy implementation is greater than returns obtained from creating an imperfectly competitive product market, then firms will not obtain above normal economic performance from their strategizing efforts. To help analyze the cost of implementing strategies, we introduce the concept of a strategic factor market, i.e., a market where the resources necessary to implement a strategy are acquired. If strategic factor markets are perfect, then the cost of acquiring strategic resources will approximately equal the economic value of those resources once they are used to implement product market strategies. Even if such strategies create imperfectly competitive product markets, they will not generate above normal economic performance for a firm, for their full value would have been anticipated when the resources necessary for implementation were acquired. However, strategic factor markets will be imperfectly competitive when different firms have different expectations about the future value of a strategic resource. In these settings, firms may obtain above normal economic performance from acquiring strategic resources and implementing strategies. We show that other apparent strategic factor market imperfections, including when a firm already controls all the resources needed to implement a strategy, when a firm controls unique resources, when only a small number of firms attempt to implement a strategy, and when some firms have access to lower cost capital than others, and so on, are all special cases of differences in expectations held by firms about the future value of a strategic resource. Firms can attempt to develop better expectations about the future value of strategic resources by analyzing their competitive environments or by analyzing skills and capabilities they already control. Environmental analysis cannot be expected to improve the expectations of some firms better than others, and thus cannot be a source of more accurate expectations about the future value of a strategic resource. However, analyzing a firm's skills and capabilities can be a source of more accurate expectations. Thus, from the point of view of firms seeking greater than normal economic performance, our analysis suggests that strategic choices should flow mainly from the analysis of its unique skills and capabilities, rather than from the analysis of its competitive environment.

Networks: Between Markets and Hierarchies

Abstract: Summary Interorganizational networks generally have been discussed in the context of nonprofit agencies. Providing an alternative between the open market and the internalization of activity the network potentially may be even more important in business. This is especially true in international operations and in industrial and services marketing. Involving technology transfer, information exchange, accounting and finance as well as marketing, network management calls for a holistic approach. To serve as an engine of growth the network also requires strategic planning both at the overall level and in memberfirms.

Strategic Brand Concept-Image Management:

Abstract: Conveying a brand image to a target market is a fundamental marketing activity. The authors present a normative framework, termed brand concept management (BCM), for selecting, implementing, and co...

Keeping The Family Business Healthy

Abstract: Shows how to use strategic planning to help a family business remain profitable, survive from one generation to the next, continue to grow, and adapt to change. Demonstrates how to create a comprehensive strategic plan for the business and the family.

Strategic Groups: Theory, Research and Taxonomy

Abstract: This paper discusses the concept of strategic groups, focusing upon the importance of intra-industry strategic groupings in understanding differences across firms within an industry. The problems involved in identifying strategic groups within industries are examined through a comprehensive review of recent studies. It is demonstrated that much of the research has used surrogates for elements of a firm's strategic direction, e.g. vertical integration, product range, R & D expenditure, to suggest bases by which creative and sustainable groups are formed. The authors argue that certain theoretical concepts such as mobility barriers, isolating mechanisms and controllable variablesprovide much firmer bases for identifying strategic groups within industries. Thus, taxonomies for understanding the nature of strategic group formulation can be developed. Implications of the strategic group concept for such strategic issues as the structure-performance linkage, firm mobility, patterns of rivalry, industry evolutionand firm growthare then examined. The paper concludes by indicating fruitful directions for strategic group research in the context of the strategic management field.

Types of Competition and the Theory of Strategy: Toward an Integrative Framework

Abstract: Three concepts of competition, each reflecting different research traditions in microeconomics, are discussed: Industrial Organization competition, Chamherlinian competition, andSchumpeterian competition. The implications of each for normative theories of strategy are discussed, and a single framework which describes the types of competitive forces a firm is likely to face over time is suggested.

Construct Measurement in Organizational Strategy Research: A Critique and Proposal

Abstract: Strategic management researchers have emphasized concept development but generally have ignored construct measurement issues. Because a strong linkage between concepts and their measures enhances theory development, it is necessary to validate strategy measures systematically. In this vein, this paper (a) critically reviews the state of construct measurement in organizational strategy research; (b) develops a set of key criteria specifically for strategy measurement; and (c) proposes some recommendations for integrating strategy concepts with their measures.

The Strategic Decision Process and Organizational Structure

Abstract: Contributions from the strategic decision process literature are synthesized and integrated with literature on organizational structure. Propositions emerge that describe how the characteristics of an organization's strategic decision process are affected by its structure. Also discussed are the patterns of strategic process characteristics that are likely to be associated with different types of structures. Conclusions are reached on issues such as the accuracy of alternative models of the strategic decision process, and the appropriate unit of analysis for studying that process.

Planning and Financial Performance of Small, Mature Firms

Abstract: This article develops a classification scheme of planning process sophistication in small firms, categorizes small firms according to planning process sophistication, and examines the relationship between planning process sophistication and the financial performance of a select group of small, mature firms. The study overcomes several methodological shortcomings of prior research on strategic planning and firm performance. Multivariate analysis of variance is used to identify statistically significant differences between the financial performance data of firms that employ structured, strategic plans and those that do not. The results confirm previous research on strategic planning and financial performance. Finally, recommendations are made for future research.

Environments as Moderators of the Relationship Between Strategy and Performance

Abstract: Environments have been viewed as key contingency variables for relationships between strategy and performance. Yet, the nature of this contingency relationship has not been resolved; do environments moderate its form or its strength? Using moderated regression analysis and subgroup analysis, this study demonstrated that environments, as measured by characteristics of market structures, moderate the strength but not the form of relationships between strategy variables and performance.

Multi-Objective Assessment of Effectiveness of Strategic Planning: A Discriminant Analysis Approach

Abstract: Drawing on the relevant literature, this study develops seven key dimensions of planning systems, five reflecting their design aspects and two tapping the organizational context of planning. Discri...

Strategic Management of Uncertainty

Abstract: This paper presents a strategic view of environmental uncertainty for profit-oriented organizations. It argues that managers make decisions that sometimes result in the aggressive creation of environmental uncertainty. A proposed model suggests that although strategy, structure, and performance constitute environmental enactment processes, the environment also directly influences organization performance. Further, the performance of others influences the environment through individual and collective actions.

Towards Reconciliation of Market Performance Measures to Strategic Management Research

Abstract: Four research issues are identified that highlight the contrasting perspectives of strategic management and finance on event-study methodology. These issues then are used to evaluate five finance procedures used to calculate market-based performance measures. In each case, alternative procedures are recommended to make these measures more relevant both conceptually and statistically, for strategic management research.

The Relationship of Strategic Planning to Financial Performance

Abstract: The relationship between financial performance and characteristics of corporate planning systems was investigated/Planning systems that combined an external focus with a long-term perspective were found to be associated with superior 10-year total return to stockholders. A lagged relationship between such systems and 4-year average annual returns to investors also was identified.

Strategic Management: A Methodological Approach

Abstract: Framework for strategic management strategic analysis strategic visioning, goals, ethics and social responsibility the competitive environment capability based strategy market dynamics and sustainable advantage strategy in a global environment financial planning and competitive-cost analysis entrepreneurship, service sector, mergers and acquisitions the leadership factor in strategy and implementing strategic change information technology in strategy and future organization structure.

The Theory and Practice of Strategic Management in Smaller Rapid Growth Firms

Abstract: This article contrasts the theory of strategic planning with actual practice in smaller rapid growth companies. The literature on strategic planning in general and smaller organizations in particul...

Collective Strategy: Vice or Virtue?

Abstract: This study examines opportunities and risks of collective strategies. Some dysfunctional outcomes of collective strategies include their tendencies: to reduce strategic flexibility; to increase the impact of external disturbances; to lower organizational adaptability; and to attract new entrants. A model is developed which provides an integrated analysis of the consequences of collective strategy; it highlights the dialectical relationship between collective and competitive strategies. Possibilities for avoiding or muting the dysfunctions of collective strategies are discussed.

Strategic Management of the Socially Responsible Firm: Integrating Management and Marketing Theory

Abstract: Corporate social responsibility is conceptualized as a “product” offered to key publics of the firm. A model is proposed that integrates the content and process considerations of social responsibility using a “marketing” orientation. This approach is designed to increase the firm's relative competitive advantage and enhance the benefits of socially responsive behaviors.

Decentralization, Strategy, and Effectiveness of Strategic Business Units in Multibusiness Organizations

Abstract: The relationship between decentralization and the effectiveness of strategic business units (SBUs) within multibusiness organizations is examined. Three strategic continua are considered—Gupta and Govindarajan's (1984) build-harvest, Porter's (1980) differentiation-low cost, and Miles and Snow's (1978) prospector-defender; in each case it is proposed that the degree of decentralization of decision-making authority delegated to the general manager of the SBU should be closely aligned with the SBU's strategy to optimize the effectiveness of the SBU.

Environmental analysis units and strategic decision‐making: A field study of selected ‘leading‐edge’ corporations

Abstract: In response to increasing environmental change many corporations have developed specialized environmental scanning units. Previous research reveals conflicting findings regarding the viability of these units for introducing environmentally relevant information into strategic decision processes. A field study was conducted on 10 ‘leading-edge’ corporations. The results show continuing experimentation with alternative administrative structures and the vulnerability of units that are not tightly linked with strategic planning processes.

Effects of Team Building and Goal Setting on Productivity: A Field Experiment

Abstract: A field experiment conducted with 53 hard-rock miners in an underground metal mine examined the effects of two interventions, team building and goal setting, on miners' productivity and strategy de...

Dilemmas in linking succession planning to individual executive learning

Abstract: This paper examines the issue of linking the selection of top-level executives with the development of these people. It first describes three stages in an organization's development of a succession system which promotes the attainment of a firm's objectives: 1) oneposition staffing, 2) replacement planning, and 3) succession planning. Then we examine the other piece to be connected to succession planning: executive learning. It is argued that most planned executive development is aimed at task learning, not personal learning. Consistent with this condition, most executive education activities overstress classroomstyle receptive methods, while neglecting active learning. Reasons for this state of affairs are proposed. The paper concludes with recommendations for enhancing personal learning for executives and for better integrating this learning with the strategic succession planning of the organization. This sort of strategic approach to executive succession is seen as the “acid test” in a firm's strategic planning process.

Strategic Factor Markets: Expectations, Luck, and Business Strategy

Abstract: Develops a framework for identifying competitiveimperfections in strategic factor markets (i.e., those markets for theresources needed to implement a strategy). The goal of this framework is to aidfirms in implementing high return product market strategies. In a perfectmarket setting, a firm seeking to acquire resources and a firm that owns theresources being sought would have the same expectations as to the future valueof the strategy before it is implemented. In reality, this is not usually thecase, as firms can both overestimate and underestimate the strategy. Firms thatare able to gain a more accurate expectation of the return for potentialstrategies they are considering implementing will enjoy higher returns over thelong run. Differing firm expectations create a strategic market factor competitiveimperfection. Some researchers have contended that other firm characteristicscan also lead to competitive imperfections. In reality, these firm differencesare actually just a manifestation of differences in firm expectations. Includedare lack of separation, uniqueness, lack of entry, profit maximizing, financialstrength, and lack of understanding. In order for firms to identify strategies that present higher returns, theymust consider two sources of information. The first consideration is the firm'scompetitive environment. The second is the firm's organizational skills andcapabilities. While many firms rely on luck, careful analysis can be utilizedto aid firms in implementing profitable strategies. (SRD)