Time-Based Strategies and Practice

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90 Long Range Planning, Vol. 26, No. 4, pp. 90 to 101, 1993 Printed in Great Britain 0 0024-6301/93 $6.00 + .OO 1993 Pergamon Press Ltd Time-Based Strategies and Practice Gary E. Spanner, Josh Pablo Nun”0 and Charu Chandva Theory As firms compete in a global environment, the need for integrating functions in organizations is being felt more than ever. Firms are realizing that to sustain long-term competitive advantages, business strategies have to be linked to functional strategies. ‘Time’ provides this.missing link. Recent research supports the use of time-based competition strategy in defining corporate objectives, outlining strategic programmes and measuring productivity and performance in ‘time’ units rather than…show more content…
Time-Based Strategies-Theory and Practice 91 scope Narrow Broad 2 High Low __ I 1 __ ____I 3 Indicates product-process cluster Figure 1. Interplay of generic market characteristics Linking Generic and Functional Strategies A firm or business unit employs a particular generic strategy to stay competitive. The choice of a generic strategy is based on its expectation of (a) achieving relative to the superior financial performance competition over the long run, (b) being internally consistent across functional departments, and (c) allowing all parts of the organization to pursue a similar goal. These strategies, however, often have not been able to sustain competitiveness long enough for businesses to enjoy continued success and growth in the market. A major underlying reason for this is the fact that various components of the organization are not able to incorporate the requirements of the generic strategies. Thus, while a firm may be able to improve profits or increase its market share in the short run, the strategy is not robust enough to sustain growth and profitability. In many such firms, ‘time’ is the missing link to better strategies. Stalk3 contends that Japanese companies are managing time the way most companies manage costs, quality, or inventory. In discussing the sources of competitive advantage, he further observes that as a strategic
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