Business Strategy Formulation Research Articles

Oblikovanje proizvodne strategije in konkurenčne prednostne naloge proizvodnje

The formulation of production strategy includes a discussion about the production strategy, factors of influence or decision-making areas in the production function, and its connection with competitive priorities of production. The production strategy should correspond to and comply with the strategy of an organisation as a whole as well as other specific strategies, particularly marketing. The production strategy is included in the strategic plan of a company as its integral component and a starting point for the formulation of business strategy. Each company should be aware of the importance of the production strategy in order to achieve competitive advantages. The paper shows the production strategy in the selected company.

ESTRATÉGIA COMO PROCESSO DE APRENDIZAGEM: UM ESTUDO EMPÍRICO DE SEUS FATORES DETERMINANTES EM UMA EMPRESA DE TI

El objetivo de este estudio fue verificar en un fabricante brasileno de computadoras, el proceso de formulacion de estrategias de negocios se entiende principalmente como un proceso de aprendizaje. Entrevistas basado entrevista estructurada, la observacion, la investigacion documental y analisis de contenido fueron los instrumentos utilizados en un estudio de campo con un enfoque cualitativo. La primera etapa de la investigacion implico la identificacion de siete acciones estrategicas recientemente implementadas en la empresa. El siguiente paso fue comprobar, a partir del analisis del proceso de seleccion de las acciones estrategicas identificadas en la primera fase, la intensidad de la presencia en la compania de nueve caracteristicas que, en el entendimiento de los autores citados en el marco teorico, son comunes a las empresas que entienden la formulacion estrategias como un proceso de aprendizaje. Los resultados del estudio sugieren que las cuatro caracteristicas - intrapreneurship, la fuerza de los mandos intermedios, flexible y el medio ambiente externo inestable - estan muy presentes en la empresa, dos caracteristicas - La cursiva es pequeno en la planificacion y el control, y estrategias de emergencia imprevistas - puede ser clasificados como grado medio de presencia, y cuenta con tres - un enfasis en la estrategia como un paraguas, el enfasis en el aprendizaje de bucle doble, y un enfasis en la estrategia como perspectiva - resulto pequenos regalos. La investigacion permitio establecer que las acciones estrategicas mas eficaces para la empresa investigada a traves de procesos no desarrollados clara y bien ordenada, controlada y explicita, sino que se enmarca tan relevante para un proceso de aprendizaje centrado en el historial de la empresa

Strategy as a Learning Process: An Empirical Study of its Determinants in a Company of It

The aim of this study was to verify in a Brazilian manufacturer of computers, if its process of formulating business strategies is understood primarily as a learning process. Interviews based on a script of questions, direct observation, archival research and content analysis were the instruments used in a field research with a qualitative approach. The first stage of the research was the identification of strategic actions recently implemented in the company. The subsequent stage verified from the analysis of the process of choosing seven strategic actions identified in the first stage, the intensity of the presence in the company of nine characteristics that, according the authors cited in the theoretical framework, are common to companies who understand the formulation strategies as a learning process. The survey results suggest that four features - intrapreneurship, strength of middle management, flexible organizational structure and unstable external environment - are strongly present in the company; two features - little emphasis on planning and control, and emergency of unplanned strategies - can be classified as average degree of presence, and three characteristics - emphasis on strategy as umbrella; emphasis on double-loop learning, and emphasis on strategy as perspective - proved to be present in low level. The research revealed that the most effective strategic actions of the company surveyed were not developed through clear, well ordered, controlled and explicit processes, but were shaped, in a relevant way, for a learning process focused on the past history of the company.

Capturing Value From Innovation—Diverging Views of R&D and Marketing Managers

Profiting from technological innovation requires both the development of new products and the capture or appropriation of profits from them. For new product development, the interplay of marketing and R&D has been intensively researched. In contrast, for capturing value, this interplay has been largely neglected in the literature. To fill this gap, we study choices by marketing and R&D managers regarding activities aimed at appropriating profits from new products. We study, in detail, how managers perceive the effectiveness of product-related patents, overall patent portfolio size, marketing, sales and services quality, lead time, and contributions to open standards. We conducted discrete choice experiments with 143 managers working in R&D or marketing functions in upper and middle management in a leading communications equipment firm, and analyzed the resulting data by comparing marginal effects of rank-ordered mixed logit models between the two groups. We find that choices of R&D and marketing functions on how to capture the most value differ strongest on the mechanism that is perceived as most important by R&D managers, “lead time advantages.” Top management needs to consider and deal with these diverging perceptions when formulating business strategies on value capture.

An exploratory study of strategic operations audit methods in services

PurposeThe purpose of this paper is to close the gap between theoretical approaches to strategic operations auditing and empirical analysis of practice in service organisations. Through analysis of the two different views of strategy formulation – environment‐market and resource‐based – the paper aims to provide insights on how strategic operations audit methods are being used and under what circumstances.Design/methodology/approachThe case study methodology was employed which involved a three‐stage data collection and analytical process. Its purpose was to identify how strategic operations audit methods were being used, why they were used and the particular circumstances of their use. Trails of operational improvement within each of six case studies show links between service operational activities, the benefits achieved by the improvements and the formulation and/or execution of each service company's business strategy. These trails of improvement provided a means by which to reveal some of the strategic operations audit methods being used. In addition, interviews and analysis of supporting documentation ensured the complete set of methods being utilised was identified.FindingsThe results indicate three main findings. First it is recognised that the service companies all look to adopt a top down approach to strategic operations auditing and seek to maintain, and where possible, gain greater strategic impact from their service operations. Second, the competitive state of the business impacts the choice of strategic operations audit method used. All companies studied employed an environment‐market method to assess operations – market fit. Only when a company is confident of its competitive position will managers then look to also devise a resource‐based method in order to assess its current ability to nurture new capabilities to exploit. Third, companies use a variety of integration techniques to verify on‐going cohesion across infrastructural decision‐making categories of the content of service operations strategy. The assessment of cohesion within service operations strategy takes place within subsets of the content of the strategy. The authors did not find integration techniques that hone structural decision categories or service operations strategy as a whole. The results also show that methods used by managers are pale imitations of the rigorous procedures originally devised by researchers.Practical implicationsService operations managers possess inadequate understanding of how the application of a strategic operations audit method should be made and limited ability to undertake the audit in a structured and meaningful way. A strategic operations audit methods selection process is put forward to remedy this. The process acknowledges that the choice of a particular method is contingent on the stage of development of the company's service operations strategy. It guides managers through the decision‐making process of what strategic operations audit method to use and when managers should be using it. The message for academics is that new resource‐based methods need to be created that are accessible to managers and relevant when service operations strategy has successfully evolved to the point where greater influence is being sought from it in the formulation of business strategy.Originality/valueAn empirical study within service operations management of the practice of strategic operations auditing is rare. The paper's findings begin to address the gap between theory and practice. The paper presents revisions and additions to the operations manager's tool kit of strategic operations audit methods and culminates in a selection process to guide managers on which tool to use and when.

Incorporating business strategy formulation with identity management strategy formulation

PurposeIdentity management (IdM) not only improves the process of creating and maintaining digital identities across business systems; it can, if implemented successfully, contribute to the strengthening and positioning of the business for success. In order to have a successful IdM implementation, an organisation must step back to determine a course of action that solves enterprise‐wide issues. Short‐sighted actions can lead to confusion, unnecessary expenses and the delay of beneficial results. The purpose of this paper is to deliver guidelines for the application of strategic management principles regarding IdM implementation, and propose a holistic model incorporating business strategy formulation with IdM strategy formulation.Design/methodology/approachA total of ten senior managers involved in IdM implementation projects were interviewed. Face‐to face interviews were conducted, with 30 minutes allocated per participant, and an assistant present to administer the proceedings. Primary data was collected using a semi‐structured questionnaire. Part A of the questionnaire collected the respondent's details and provided definitions of IdM to clarify the concept. Part B consisted of descriptive questions which dealt with the following three categories: IdM as part of the business strategy, IdM challenges in the company, IdM implementation approach used by the company and strategic framework used.FindingsFindings indicate that IdM is seen as part of strategy and as such IdM implementations consist of a strategic thinking process accompanied by an incremental tactical implementation. Challenges facing IdM centred not on technological issues, but on implementing IdM as a competitive tool. Unfortunately, lack of commitment and external environment analysis; relegate IdM planning to remain on a tactical, rather than a strategic level.Originality/valueA strategic planning process is presented in this article to model the interdependence between IdM implementation planning and strategic management (business strategy formulation). This model enables the organisation to develop and communicate its vision for IdM, to link IdM and business plans, and to gain the support of the whole enterprise in this endeavour. By leveraging the proposed model, organisations can gain a bird's eye view of IdM as an integral part of the business strategy, and ensure an IdM implementation that has enterprise‐wide support and benefits.

Successful Programs Wanted: Exploring the Impact of Alignment

Alignment between formulation and implementation of business strategy can be important for achieving successful programs. The authors have explored the development of a program management alignment theory. Statistical testing showed that interaction between the study model variables was found to be multidimensional, complex, and subtle in influence. Thus, the authors conclude that programs have both deliberate and emergent strategies requiring design and management to be organized as complex adaptive systems. Program life-cycle phases of design and transition were often formed from an unclear and confusing strategic picture at the outset, which can make those phases difficult to control. Learning was established as an underlying challenge. The study model demonstrated continuous alignment as an essential attribute contributing toward successful delivery. This requires program design and structure to adopt an adaptive posture.

A simulation-based approach for IT and business strategy alignment and evaluation

The use of IT solutions and services has drastically changed the effectiveness of business strategies. Although IT seems to create competitive advantage, modern enterprises often fail to gain the expected business value from it. This paper aims to cope with this problem. It first discusses the two key factors in creating IT-enabled business value, the strategic alignment of business and IT strategies and the mapping and evaluation of them by using the balanced scorecard method. It then proposes a simulation-based approach for an effective formulation, alignment and evaluation of business and IT strategies in conjunction. An extended simulation model for a computer manufacturer supply chain depicts the high applicability of the proposed integrated approach.

Chaos Theory: A Contribution to the Formation of Strategies

It is our intention, through this work, to contribute to the understanding of the influence of chaos theory on the formation of organizational strategies in the dynamic and complex environment in which organizations are embedded. In this sense, we present a theoretical review, leveraged by a dialectical epistemology, in which we propose to show some attributes of chaos theory and theoretical assumptions to be considered in the context of different areas of organizational strategy, with the goal of trying to elucidate and approximate the analytical characteristics of both theories and make evident how chaos theory can contribute to and/or influence the formation of business strategies.

TEORIA DO CAOS: UMA CONTRIBUIÇÃO PARA A FORMAÇÃO DE ESTRATÉGIAS

It is our intention, through this work, to contribute to the understanding of the influence of chaos theory on the formation of organizational strategies in the dynamic and complex environment in which organizations are embedded. In this sense, we present a theoretical review, leveraged by a dialectical epistemology, in which we propose to show some attributes of chaos theory and theoretical assumptions to be considered in the context of different areas of organizational strategy, with the goal of trying to elucidate and approximate the analytical characteristics of both theories and make evident how chaos theory can contribute to and/or influence the formation of business strategies.

Mission Statements of Pharmaceutical Firms in Bangladesh: Missing Link and Probable Impact

A well aimed and designed mission statement is required to maintain consistency and ensure unanimity of purpose in the business strategy formulation, implementation and evaluation. Unanimity of purpose is also required to develop a strong corporate culture in the competitive world. This paper deals with the content analysis of mission statement of pharmaceutical industry of Bangladesh. Product of pharmaceuticals industry is more sensitive than other industries. At the same time managers are compel to maintain quality, conduct research and ensure financial growth. This paper has identified missing links of mission statement with its probable impact also.

Using patent analysis to establish technological position: Two different strategic approaches

Discussions on business strategy formation in the past 50years can be separated into two categories: the inside-out and the outside-in approach. Technology is a critical factor when manager formulate their business strategy, and patents have served as an important indicator of technology. A patent portfolio can be used to understand the capabilities of a firm, as an inside resource pattern; and the patent citation of firms can be used to find the relationship of a firm, as an outside dependency. This study uses patent information to establish an effective model for the technological position of business methods. The 5 by 6 matrix was generated and four situations between firms were induced. Researchers and managers can use that matrix and situations to recognize the real competitors or cooperators, and formulate the technological strategies which include competition, cooperation, or complementary cooperation.

Future Directions Of Management Science And Operations Management In Business School Curricula

The fields of Management Science (MS) and Operations Management (OM) have co-existed in business school curricula for over a half century. This paper examines five trends that point toward a bright future for Operations Management in the business curriculum. These trends include an increasing emphasis on global competition, the growth of the supply chain as a competitive weapon, more participation from the Operations function in formulating business strategies, the continued dominance of the service sector over the manufacturing sector in developed economies, and increasing demand for general management skills over technical skills for business school graduates. The de-emphasis on technical skills and the fact that MS techniques have been subsumed into other functional areas indicates that the future of Management Science in the business curriculum may not be as bright.

A Comparative Study Between the Performance of Relational & Object Oriented Database in Data Warehousing

A data warehouse is a repository of subjectively selected and adapted operational data which can successfully answer any ad hoc, statistical, complex or analytical queries. Data warehousing technology is becoming essential for effective business intelligence, business strategy formulation and implementation in a globally competitive environment where in larger and larger amounts of data are required to be processed faster and faster for comprehension of its real meaning and impact. A warehouse is a subjectoriented, integrated, time-variant and non-volatile collection of data in support of management's decision making process”. Data that gives information about a particular subject instead of about a company's ongoing operations. It is integrated as data that is gathered into the data warehouse from a variety of sources and merged into a coherent whole. Data warehouse system is time variant as all data in the data warehouse is identified with a particular time period This paper discusses in detail two existing database models used for data warehousing, the relational database and object oriented database and does an analysis of the benefits of Object Oriented databases over the conventional relational database in Data warehousing.

Strategic Management: Formulation, Implementation, and Control in a Dynamic Environment

* Preface * Acknowledgments * Section I: Strategic Management Framework * Chapter 1. Introduction to Strategic Management * Why Is It Important to Study Strategic Management? * History of Strategic Management and Business Policy * Purpose of Business Policy Course * Business Policy * Strategic Planning * Strategic Management * Moral and Ethical Duties * Corporate Governance and Strategy * Review Questions * Chapter 2. Strategy Formulation * Introduction * Who Are the Strategists in Any Organization? * Environmental Scanning * Strategy Formulation * Strategy Implementation * Evaluation and Control * Decision Making * Review Questions * Chapter 3. Assessing the Environment * Introduction * Dynamic Environments * The Internal Environment * The External Environment * Environmental Scanning * Review Questions * Appendix: The Use of Financial Ratio Analyses * Chapter 4. Corporate Strategy * Introduction * Corporate Strategic Alternatives * Analysis of Corporate Strategies * Strategy in Multiple-SBU Firms * Evaluating Corporate Strategy: Beyond the Business Portfolio Matrix * Review Questions * Chapter 5. Business and Functional Strategies * Introduction * Business Strategy Alternatives * Formulating Business Strategy * Competitive Strategies and the Health Care Industry * Functional Strategic Alternatives * Strategy Types * Conclusion * Review Questions * Chapter 6. Strategic Management in the International Environment * Introduction * Trends Toward Internationalization * Advantages of Internationalization * International Strategic Management * Entering a Foreign Market * Multinational Challenges * How to Compete Globally * U.S. Competitiveness * Tomorrow's Organizations * Review Questions * Chapter 7. Corporate Structure and Implementation * Introduction * Strategy Implementation * The General Manager's Role in the Implementation Process * Issues in Strategy Formulation and Implementation * Analyzing Strategic Change * Building a Capable Organization * Allocating Resources to Match Strategic Objectives * Establishing Organization-Wide Commitment to the Strategic Plan * Conclusion * Review Questions * Chapter 8. Corporate Culture, the General Manager, and Implementation * Introduction * Installing Internal Administrative Support Systems * Exerting Strategic Leadership * Fulfilling the Leadership Role * Summary * Review Questions * Chapter 9. The Control Function * Introduction * Levels of Strategy and Control * Organizational Control * Financial Measurement Methods * Reporting Systems * Information Systems * Vehicles of Control * International Control * Summary * Review Questions * Chapter 10. Strategic Management in Profit and Not-for-Profit Organizations * Introduction * Evolution of Not-for-Profit Organizations * What Is a Not-for-Profit Organization? * Mission Statement * Strategic Objectives * Crafting a Strategy * Strategy for Multi-Primary-Mission Organizations * Management Styles * Strategic Decision Making in NFP Organizations * Evaluation and Control in NFP Organizations * Implementation in the NFP Sector * Role of the Board of Directors in For-Profit and NFP Organizations * Conclusion * Review Questions * Section II: Preparing a Case Analysis * Case 1. Ben & Jerry's * Case 2. Blockbuster * Case 3. Tootsie Roll Industries, Inc. * Case 4. Southwest Airlines * Case 5. Airborne Express * Case 6. Snapple * Case 7. PepsiCo, Inc. * Case 8. Pillsbury * Case 9. Hershey Foods Corporation * Case 10. H. J. Heinz * Case 11. Gap Inc. * Case 12. Intimate Brands, Inc. * Case 13. Nike * Case 14. Rite Aid * Case 15. Circuit City Stores, Inc. * Case 16. Gillet

Implementation of enterprise resource planning (ERP) software in a major construction contracting organization in Hong Kong

PurposeThe purpose of this paper is to summarize the scope, methodology and main findings of a doctoral thesis about the implementation of enterprise resource planning (ERP) software in a major construction contracting organization in Hong Kong. This research is taken from a leadership and power and project management (PM) perspective.Design/methodology/approachThe project adopted a case study approach in which the candidate was an employee/observer, who was embedded as a member of the business transformation team taking an action learning approach to study the ERP adoption. The research used the soft system methodology to identify gaps in the observed maturity level which exists in the organization. Data was gathered using public and private documentation, semi‐structured interviews, observation and was validated through review of evidence with participants.FindingsThe results identified the importance of leadership and cultural issues in implementation of the business strategy. This research includes a contribution in two spheres: PM and construction procurement. The first implication for PM theory was to illustrate how knowledge has been efficiently managed within a construction organization by using information communication technology (ICT). It can be represented by the ladder of ICT>ERP>KM>PM. The second implication was to pave the way for the use of partnering strategies in PM practice. It can be represented by the ladder of National Culture>Organizational Culture>Leadership>Partnering Strategy>PM.Practical implicationsThis model could be adapted to other large and complex organisational contexts. The research project also has implications as opening up a PM perspective on business transformation.Originality/valueThe contribution of this research is proving the success of adopting KM in a construction company by using an ERP system. The importance of culture in the traditionally collectivistic construction industry, and the issues senior management should take into account when formulating business strategies.

Anticipating information needs for senior portal contents

Many senior portals are expected to appear as the elderly population and the number of aged Internet users continues to increase. This study defines a senior portal as an Internet portal that is specific to seniors. The purpose of the study is to investigate what kind of content of senior portals is preferred by prospective users of senior portals, and to analyze the preference for contents. The study administered a survey to prospective senior portal users over 50 years of age who are residing in two large cities in Korea. This study found that content preferences vary according to the individual characteristics of prospective users. The findings of this study could help organizations to explore business opportunities, develop business models, and formulate business strategies that can differentiate them from their competitors.

Health care institutions in Vojvodina - management approach

The aim of this paper is that in a comprehensive, concise and understandable way to explore the place, role and importance of modern approaches to determining the strategic position of health institutions, as well as economic and financial indicators in their business. This paper presents an analysis of economic indicators of business performance, and analysis of financial indicators from the perspective of the BSC model. The concept paper was agreed with the methodology of research, which includes: the research problem, case studies, research goals, the basic hypothesis research, scientific and social justification of research and research methods. Improved strategic position Clinical Center of Vojvodina CCV. Health care organizations in their operations in order to achieve success is developing systems for measuring and resources from which to create strategies and develop skills. BSC is a tool to transform the mission into the strategy, objectives and measures, based on four aspects, namely: financial, aspect of the patient, aspect of internal business processes and aspect of learning and growth. BSC is a framework, how to develop mission and strategy, which along with help inform the methods of measurement of health workers on the stimulation to the past and projected success. Measures in the BSC is used for formulating business strategies, communication about it, alignment of individual and common goals and initiatives for their implementation. Four aspects are illustrated by the BSC to establish a balance of short-and long-term objectives, implementation and expectations of objective and subjective measures, all of which leads to the integrated strategy.

An empirical analysis of factors influencing the adoption of Mobile Instant Messaging in China

This paper derive a theoretical model from Technology Acceptance Model (TAM) and social network theory to empirically elaborate how factors can effect on users' adoption of Mobile Instant Messaging (MIM). Based on an online and off-line survey data from a sample of 364 Chinese MIM users, structural equation model to analyse why Chinese users adopt MIM. The study reveals that social and technical factors significantly affect users' adoption of MIM. Perceived Usefulness (PU) is the most influential part in user's attitude towards using MIM, followed by Perceived Entertainment (PE), cross-platform interaction and Perceived Ease Of Use (PEOU); perceived Synergy Value (SV) significantly affects PU and ease of use, while cross-platform OS and cost have negatively correlation with individual's attitude. Implications for formulating business strategies so as to improve MIM product and customer service, and suggestions for future research are provided.

Formulating service business strategies with integrative services model from customer and provider perspectives

PurposeThe purpose of this paper is to construct an integrative service model from customer and provider perspectives so that it can be utilized to formulate service business strategies.Design/methodology/approachThe concepts of the resource‐based view (RBV), customer co‐creation and service modules obtained from a literature review are combined to construct a mathematical model. Based on the model, business strategies are formulated by utilizing existing marketing and service frameworks.FindingsInnovative services can be generated from the model after combining different core services. To gain competitive advantage in a changing environment, a feedback mechanism should be used to provide dynamism.Research limitations/implicationsAn empirical test of the model could be undertaken as a future study to test the validity of the model. Adding more attributes to give the model finer resolution will increase the complexity of the model. Extending the application of the model to firms' internal departments will mean that the relationships between departments have to be reinvestigated.Practical implicationsObtaining the salient attributes with the heuristics of the 80‐20 rule and the large number principle means optimization of resource utilization under the condition of customer satisfaction.Originality/valueThe model, developed by combining the concepts of RBV, customer co‐creation and service modules, is an innovative tool for the formulation of service business strategies.