The Art Of Corporate Endurance

2060 Words9 Pages
STRATEGIC INNOVATION In an era of accelerating competition, limited market growth, and declining corporate lifespan, a dramatic change in our approach to strategic planning is an absolute necessity. Companies flourish and fade with increasing frequency. A commitment to “Strategic Innovation” must replace traditional Strategic Planning. Executives who fail to acknowledge the importance of and act on this sea change are almost certain to see their companies’ fortunes fade in the face of new disruptive forces that render old methods and relationships obsolete. Read: The Art of Corporate Endurance https://hbr.org/2014/04/the-art-of-corporate-endurance Answer the following: Strategic Planning Today The term “Strategy” has become a cliché.…show more content…
We derive the term generalist from general. The generalist adopts a goal or objective, and sets forth a strategy to achieve it. She implements a strategy supported by a set of intricate tactics leading to victory. A well-formulated business strategy affords answers to four crucial questions: I. WHERE DO WE COMPETE? In which competitive fields or markets will we participate? Markets are industries, product markets within those industries, and geographic markets. II. WHAT UNIQUE VALUE DO WE CONVEY? Why do customers adopt our product or service over the competitions’? Our exclusive value could be cost or differentiation. Value includes image, customization, styling, dependability, or other factors. III. WHAT RESOURCES OR PROFICIENCIES DO WE EXPLOIT? Do we have exceptional human capital, superior technology, unrivaled network connections, or unique reputation? Resources can be tangible like a gold mine, or intangible, like a brand name. Capabilities refer to performance skills or the ability to use our tools efficiently. IV. HOW DO WE SUSTAIN UNIQUE VALUE? Are there barriers to imitation? Are there factors that inhibit the ability or desire of the competition to compete for our customers? TWO ADDITIONAL FACTORS ARE: V. Staging (timing): what will be our speed and sequence of moves? VI. Economic Logic: how will we obtain our returns? IKEA: REVOLUTIONIZING AN INDUSTRY I. Where do they compete? The company sells
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