Library of Congress Cataloging-in-Publication Data Thompson, Arthur A., Crafting and executing strategy: the quest for competitive advantage: concepts. Third Pages Crafting and Executing Strategy Creating Sustainable High Performance in South African Businesses 2nd South African Edition. lagemahgunste.ml - Ebook download as PDF File .pdf), Text File .txt) or read book online.
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J. mmmm m. University of Alabama. University of South Alabama. Crafting and. Executing Strategy. The Quest for. Competitive. Advantage. Concepts and Cases. Crafting and Executing Strategy: The Quest for Competitive Advantage, 20e by Thompson, Peteraf, Gamble, and Strickland maintains its solid. Cases Manual [PDF] [EPUB] Crafting & Executing Strategy 18th Edition Mystic Monk Coffee. CASE 1 Mon, 01 Apr GMT (PDF) Crafting?.
That is a big mistake, especially given the huge and growing amount of money involved. If functions do not adopt a strategy consciously, they will almost inevitably end up defaulting to one of two unconscious organizational and cultural models, both of which are likely to result in their becoming a drag on corporate performance rather than a driver of it.
It can be deduced from the actions the organization takes because, essentially, strategy is the logic that determines what you choose to do and not do in service of a particular goal. The goal may be implicit. It may have evolved over time. The choices may have emerged without discussion and exploration. The actions may be ineffectual in achieving the goal. But the strategy exists nonetheless. When Finance decrees that all investments must have a cash payout within seven years, it is making a strategy choice.
It is placing a bet that the relatively immediate benefits from a quick return will outweigh the potential benefits that come from making longer-term investments. When IT decides to outsource application development, it is making a strategy choice. It is betting that lowering costs through outsourcing is a more effective way to create value than building applications internally would be. And when HR chooses to standardize hiring practices around the world, it is making a strategy choice.
It is choosing to pursue scale advantages from a shared approach rather than benefits such as agility and adaptation to local culture of customizing by region. Does it really matter if such choices are made without an explicit strategy?
We believe it does, because it means a function has fallen prey to one of the two damaging strategies: Do everything the business units want. We call this the servile strategy, and it is predicated on the belief that functions serve at the pleasure of the business units.
A company exists to create products and services for customers, so the business units, which do the creating and serving, rightly drive corporate strategy. But we should not forget that functions serve customers too: the business units that use their services. Functions that unconsciously adopt the servile strategy try to be all things to all people. As a result, they wind up overworked and underwhelming.
They become undifferentiated and reactive, losing their ability to influence the company and access resources. They struggle to recruit and retain talent, because no one wants to work for an ineffectual part of the firm.
A servile corporate function lives under the constant threat of being made redundant. Put the function first. Functions must make clear choices that set their company apart in the marketplace.
The risk and compliance team builds a huge apparatus around risk assessment and then looks for ways to insert itself into corporate decision making wherever it can. The result, unsurprisingly, is a function that serves itself rather than its customers, much as a monopoly business would. And at some level, such functions are monopolies: Business units are often prohibited or strongly discouraged by senior management from using outside vendors for their HR or finance or other services.
The trouble is that imperial functions all too easily fall prey to the worst tendencies of traditional monopolies: bloat, arrogance, and overreach. And like most monopolies, they inevitably experience a backlash. To follow the lead of these exemplars, functions must eschew unconscious strategies and instead make clear, focused, and explicit choices aimed at strengthening and safeguarding the capabilities that set their company apart in the marketplace.
How to Create Effective Functional Strategy The first two questions a functional leader should explore when putting together a strategy relate to defining the problem: First, What is the implicit current strategy of the function, as reflected in the choices that it makes every day?
And second, What are the strategic priorities of the rest of the corporation, and is the function critical to them? In trying to serve all parts of the firm the function may be underserving those that are key to its success. Important though the exercise is as a first step, do not dwell too much on these questions. There is often a temptation to do a great deal of research—documenting what your organization is doing in detail, what functions in competitors are doing, and so on.
Exploring ways to solve a problem is far more valuable than obsessing about it. A reasonable expectation is that a group of smart people, using their existing knowledge, should be able to answer the two questions to a good-enough level after a few hours of discussion.
This involves answering another pair of interrelated questions: Where will we play? For functions, this question is relatively straightforward.
It might determine that its primary customers are business-unit CEOs, its core value offering is recruiting and developing young designers, and its core internal capability is design talent scouting. It might choose to outsource learning and development to top-flight business and design school partners, and rely on outside agencies for administrative recruiting and training.
In determining where to play, different functions may focus on different parts of the corporate strategy. Consider a digital-platform company pursuing aggressive growth in China and Asia. How will we win?
General Electric needs to figure out how to provide better value to its business customers than Siemens does; Coca-Cola needs to provide better value to soda drinkers than Pepsi does. In each of these cases, the competitor is easy to identify, and its value proposition and business model can be deduced by observing its products and prices in the marketplace and studying its financial reports. With functions, the how-to-win question is more challenging. HR might be hugely valuable for one company, whereas finance is hugely valuable for another.
Likewise, it would make no sense for HR and finance to benchmark each other. Often, the appropriate benchmark is an outsourced provider. The functional team should emerge from its inquiries with a number of possible strategies that answer the questions of where to play and how to win differently from the way the existing strategy does.
At this point, the team has to make a choice.
It cannot know for sure which of several potential strategies is the right one. But with the slate of possibilities in mind, functional leaders should ask themselves, What would have to be true for each of the strategies to be successful? They should articulate the capabilities and systems required and ask under what conditions the firm should invest in building these capabilities rather than those. With a clear idea of what the enabling conditions are, they can devise tests and experiments to help narrow their options still further.
And our ability to attract, develop, motivate, and retain such people made our…culture a rare advantage. If we look back at what Sharp and the talent team did through our lens of functional strategy, we can see how they defined their problem and the choices they made to solve it.
Defining the problem. Accordingly, most hotel chains treat labor as a cost to be minimized. Frontline hotel staffers are treated as replaceable cogs in a massive, fast-moving machine.
No wonder, then, that according to the Bureau of Labor Statistics, the annualized employee turnover rate in the industry was They rarely invest much in frontline retention because it is seen as a lost cause; the huge turnover rate is treated as an inevitability. Instead they focus on cost-cutting to address labor issues: minimizing staff hours, standardizing to boost productivity, and so on.
But beginning in the late s and continuing through the s, most shifted to a structure organized around product-centered business units, in response to the need for each product line to have a clear strategy and accountability in order to win against competitive products and brands.
Crafting and Executing Strategy: Concepts, 21th Edition
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