Platform Leadership is a new concept in strategic management, introduced by Annabelle Gower and Michael Cusumano in their book , “Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation,” HBS Press, 2002. Platform leadership enables companies to exert influence over the direction of innovation that is taking place in their industry, thus extending their weight over the network of firms and customers involved with the industry. In the initial phase of many industries, the early movers tend to develop most of the components necessary to make the products. But later, specialized firms typically emerge to develop different components. Along with components, evolve platforms, which consist of various components made by different companies. Some companies become platform leaders. They ensure the integrity of the platform by working closely with other firms to create initial applications and then new generations of complementary products. “Becoming a platform leader is like winning the Continue reading
Strategic Management Terms
Strategic Lenses
Organisations strategic issues are commonly analysed from different strategy lenses. Strategic lenses are a concept of strategic management. The lenses are different ways of viewing strategy development. It examines the flow of tasks and information, or how you get things done. Each lens reveals many different traits and qualities. Using the strategic lens, one looks to optimize workflow to meet the goals and objectives of the company. This article a will cover four angles from which strategy can be viewed and implemented on a corporate level; they are strategy as design, strategy as experience, strategy as ideas and strategy as discourse. 1. Strategy as a Design This takes the view that strategy development can be a local process in which the forces and constraints on the organisation are weighted carefully through analytic and evaluative techniques to establish clear strategy direction. This creates conditions in which carefully planned strategy implementation should Continue reading
Difference Between Strategic Planning and Management Control
Briefly, here are some ways in which the strategic planning process differs from the management control process. A strategic plan usually relates to some part of the organization lather than to the totality; the concept of a master planner who constantly helps all part of the organization at some coordinated optimum is a nice concept an unrealistic one. Strategic planning is essentially irregular problems, opportunities, and bright ideas do not arise according to some- set timetable; rather, they are dealt with whenever they happen to be; perceived. The appropriate analytical techniques depend on the nature of the problem being analyzed, and no over all approach (such as a mathematical model) has been developed that is of much help in analyzing all types of strategic, problems emphasis on a systematic approach is quite likely to stifle the essential element of creativity. In strategic planning, management, works, now on one problem, then Continue reading
Strategic Management Process – Stages of the Strategic Management Process
The strategic management process aims at delineating the organization’s strategy. It is defined as the process by which managers make a choice of a set of strategies for the organization to achieve efficient functioning and higher accomplishments. It is a continuous process that appraises the business and industries where organization is involved, evaluates its competitors, defines targets to meet all the present and future challenges and finally assesses each strategy periodically. Strategic management is a particular course of action that is meant to achieve a corporate goal. By and large, the owners, founders of the company take the first step of the process. They lay down the structure responsible for carrying out several functions such as providing direction and guidance to the employees, setting up measurable goals with defined time spans and designated duties. Planning, budgeting, acquiring resources, maintaining resources and using follow-up techniques to resolve key issues are key Continue reading
Organizational Downsizing – Definition and Reasons
Organizational downsizing is the conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness. Downsizing is being regarded by management as one of the preferred routes to turning around declining organizations, cutting cost and improving organizational performance most often as a cost-cutting measure. Main Reasons for Organizational Downsizing Corporate downsizing has been the biggest fallout of the troubled times, the world is witnessing. As we continue our efforts to fight the global downturn, downsizing has become a stark reality. There are a number of reasons why a company downsizes its employee base. Merging of two or more firms: When a certain firm combines its operations with another firm and operates as a single entity, in order to stay in profit or expand the market reach, it is called a merger. In case of a merger, certain positions become redundant. The same work is done by two Continue reading
Strategic Planning Process – Five Stages of Strategic Planning Process
Any company who is trying to become major power in market has to have a properly defined strategy. Strategy is the term which is used to define specific outline according to which the company is going to act in future. It gives a well designed structure that the company will follow in coming time. Strategy is decided according to changing market trends, changing customer’s needs, changing stake holder’s interests and changing actions of competitors. Company need to have proper information about the target they are going to achieve. As per the target they set a strategy. Organizations have definite values and missions. Their stakeholders have several expectations from the company and its operation. Company should regulate their proceedings under some stretch or domain. The management of the company work, regulation of its actions, deciding the proper strategy for future, and successful implementation and evaluation of all the strategy comes under Continue reading