Changes In Corporate Strategy Research Articles

PEMANFAATAN METODE ANALYTICAL HIERARCHY (AHP) DALAM SISTEM PENDUKUNG KEPUTUSAN PENENTUAN BONUS AKHIR TAHUN

Determining the year-end bonus is a strategic decision for PT. Dankos Farma in motivating employees and achieving company goals. In this context, the Analytical Hierarchy Process (AHP) method has been implemented as part of the company's decision support system. This study evaluates the use of AHP by PT. Dankos Farma is in the process of determining year-end bonuses. Through AHP, relevant criteria such as individual performance, contribution to the team, and achievement of company targets can be analyzed systematically. The relative weight of each criterion is determined based on company priorities. Alternatives for awarding bonuses are evaluated taking these factors into account. By using AHP, PT. Dankos Farma can make more objective and measurable bonus decisions, increasing transparency and accountability in the process. Additionally, AHP allows companies to adjust bonus policies quickly to changes in corporate strategy or market conditions. In conclusion, the use of AHP by PT. Dankos Farma's decision support system for determining year-end bonuses has helped increase efficiency and effectiveness in decision making related to employee incentives.

Strategic investments in entrepreneurial brand ventures by large incumbents

PurposeConsumer product firms renowned for marketing appear to be complementing brand creation, extension and acquisition with minority equity investments in entrepreneurial brand ventures (EBVs) for strategic purposes. Similarly, EBVs are looking for growth and resources that can be accessed via inter-organizational partnerships. This flourishing industry practice and the paucity of empirical research indicates the potential for new studies. The research objective was to examine why and how large incumbents were implementing strategic brand venturing (SBV), and with this understanding to develop a framework useful for descriptive and normative purposes.Design/methodology/approachThis qualitative research study comprised in-depth interviews and multiple data sources across seven case studies drawn from US subsidiaries of global firms within the consumer products industry. Grounded in resource theory, the dimensions of strategic brand equity investments are abductively derived.FindingsThe findings delineate 16 process capabilities within four aggregate clusters entailing, the designing of the SBV program, opportunity identification, brand entrepreneur partnerships and venture portfolio management. Prefaced by endogenous and exogenous antecedents, these process capabilities help to contribute strategic and financial value when implemented.Research limitations/implicationsThis qualitative research study yielded analytical rather than statistical generalizations. A range of market and economic factors exist in the United States contributing towards a favorable entrepreneurial and brand incubation climate. This may render the SBV concept as contingent and contextual. Furthermore, the view of brand entrepreneurs' regarding the design of the process model were not explicitly sought but inferred from the discourses of the venturing units interviewed.Practical implicationsThe article outlines several important implementation imperatives for corporations endeavoring to competitively advantage their brand portfolios via adoption of a minority equity investing strategy in EBVs. Practitioners are cautioned against myopically adopting this process alone as a success heuristic given other factors may impact success such as changes in corporate strategy or upper echelon sponsorship.Social implicationsMission preservation for social brand ventures being tethered to a large incumbent may need to be taken into account prior to and during SBV relationships.Originality/valueThe research contributes to the call for greater insights into the investment processes used in venturing relationships as well as coverage of new industry sectors beyond technology industries that often characterize corporate venture capital studies. Several novel findings emerged related to the importance of—the industry ecosystem; symbiosis between the founding brand entrepreneur and brand culture; synchronization of investment strategies with an emerging brand life-cycle model and serendipitous corporate entrepreneurial opportunities.

Union Bargaining Power and Institutional Investors: Evidence from 20 OECD Countries, 1980–2017

This article investigates the relationship between the share of assets held by institutional investors relative to GDP and a synthetic index of union bargaining power in 20 OECD countries from 1980 to 2017. Findings from the use of fixed-effects OLS and instrumental variables regressions show that the share of assets held by institutional investors, especially insurance companies and pension funds, is correlated with a decline in union bargaining power. The authors argue that by contributing to significant changes in corporate strategies and governance through potential effects on jobs and wages, institutional investors in most OECD countries may have weakened the influence of trade unions, thereby leading to a higher decentralization of wage bargaining. Mixed evidence is found, however, when investigating the role of complementarity across institutions to explain cross-country heterogeneity.

Estratégias de negócio para mudanças climáticas das empresas de gestão de recursos hídricos integrantes do Carbon Disclosure Project

Objective of the study – to identify the strategic profiles regarding climate change of water resources management companies that are part of the Carbon Disclosure Project (CDP) database, for the year 2019.Methodology / approach – an exploratory research was carried out using bibliographic and documentary research and multiple case studies. The data used come from the 2019 CDP database, analyzed according to the methodological structure of Kolk and Pinkse (2005). Data were analyzed using content analysis.Originality / Relevance – the results of this research serve as an indication of the vulnerability and contribution of the segment in the maintenance and security of the supply of quality water in the medium and long term.Main results – most water resource management organizations, still in 2019, fit the profiles of Cautious Planners and Emerging Planners and have as main strategic drivers the perception of opportunities, risks, and corporate responsibility, in that order.Theoretical / methodological contribution – as theoretical contributions, the work brings the analysis of organizational strategies, specifically of companies in the water resources area, aimed at mitigating climate change. The data analysis method adopted here can be used in other business segments that are directly related to natural resources.Social / management contributions – the survey results can support decisions and changes in corporate strategies for mitigating greenhouse gas emissions in the water resources segment, as well as public policies for planning and coping with climate change.

에코시스템 시각화기반 전기차 에코시스템 동적변화 연구 : 배터리 기술 중심으로

Business ecosystem visualization is useful to clarify the structuring of the ecosystem around the business context, but has difficulty in identifying the company’s core technology portfolio, and also patterns of technology change. We suggest a way of visualizing a business ecosystem from a business relationship perspective and a technology ecosystem from a patent citation perspective separating the technology ecosystem from the business ecosystem. It enables us to identify the relationship between the two ecosystems as well as the impact of key resources on the dynamics of the two ecosystems from a resource-based view. From the academic perspective, our method can contribute to identifying changes in technology-oriented core resources lead to changes in corporate strategies, which in turn lead to dynamics in the ecosystem. It can be useful for technology strategy in practice for OEMs and battery suppliers. Battery technology in electric vehicles is exemplified.

Management of digital transformation of industrial enterprises based on maturity models

This paper considers the issues of the implementation of the digital transformation of industrial enterprises: the analysis of the existing model (AS IS) and planning the desired model (TO BE), depending on different conditions. The authors present the existing business models of digital transformation, reveal different approaches to classification, as well as their drawbacks from the point of view of practical application. In general, the models can be applied to diagnostics, but not to planning the desired state. The principle of classification of transformation models based on the life cycle of the market is proposed: monopoly, oligopoly, competition and monopsony. Firstly, the life-cycle approach allowed applying the author’s Dynamic Model of Changes in Corporate Strategies (Dynamics) to digital transformation. This model was proposed earlier for the classification of traditional business models. Secondly, the life-cycle approach allowed using the maturity models of the industry, strategies, product, processes, data etc. in order to build a planning algorithm for the desired business model. As a result of the lifecycle approach to the classification of business models, it was possible to develop an algorithm for diagnosing and planning the desired digital transformation model, taking into account the limitations of maturity levels and present it in the form of a Digital Dynamic Model of Corporate Strategy Changes (Dynamics).

CIAC: adopting postconflict strategies

Learning outcomes Identify the influence of contextual variables (i.e. politics) in the strategy of a military organisation. Analyse and evaluate strategic change options of a military organisation. Decide on a strategic change from the resources and capabilities model. Case overview/synopsis Colombia Aeronautics Industry Corporation (CIAC) is a Colombian mixed economy company that commercialises, maintains and repairs civil and military aircraft and aeronautical components. The case presents the decision that the manager must make regarding a change in corporate strategy because of the entry into force of the peace agreement between the Government of Colombia and the Revolutionary Armed Forces of Colombia (FARC). This agreement assumes that the main line of business of the CIAC would be weakened (i.e. repair of military aircraft used in the internal armed conflict with FARC), because in a new peace scenario, the aircraft would not need as much maintenance as in the most critical stages of the conflict. Complexity academic level Master of Business Administration level (suggested courses: strategy, strategic management and organisational change). Undergraduate level (suggested courses: strategy and organisational change). Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy.

A Study on Export Promotion of Korea’s Small and Mediumsized Enterprises through Digital Commercial Transactions in the Global Value Chain

The expansion of global value chain is becoming an established paradigm due to technological development and changes in the trade environment. Such global value chain formation is increasing competition among companies due to developments in transportation mode and information communication technology, the emergence of low cost domestic suppliers in emerging markets, and changes in corporate strategy due to trade liberalization. As exports through digital commerce of SMEs have become more active since 2015, the number of SMEs that utilize the support system for SMEs in government-related business through digital commerce is rising. The purpose of this study aims to analyze the export promotion plan of Korean SMEs through the digital commerce in the global value chain and draw out implications. It is necessary for Korean SMEs to explore opportunities for export through digital commerce and to find ways to open overseas markets.

Intellectual capital reporting, leadership and strategic change

Purpose – A change in leadership can signal a shift in corporate strategy to drive future value creation. To help achieve this, a different emphasis may be placed upon the intellectual capital (IC) resources within the organisation. The purpose of this paper is to examine the changes in volume, composition and emphasis of IC disclosure in annual reports mapped against the re-orientation of corporate strategy and associated leadership change. Design/methodology/approach – A longitudinal period of over three decades (1979-2010) is examined. Adopting a case-based approach, Daimler AG is purposively selected for this research having a number of distinct changes in strategy over the period, reflective of leadership change. Using content analysis, annual report IC-related disclosures (structural, relational and human capital) by Daimler AG are examined, by category and more detailed sub-categories, against corporate strategy. Findings – The composition and emphasis of IC disclosures found in the annual reports changes over the longitudinal period and is reflective of the prevailing corporate strategy at that time. There were four identified periods of strategy, each associated with leadership change. The prevalence and qualitative focus of IC disclosures relevant to each period reflects the importance of respective IC components in corporate value creation. Research limitations/implications – The research is based on annual report IC disclosures within one case company and hence reflect the messages conveyed by that company over the longitudinal period. Additionally, the authors recognise that the annual report is only one source of corporate information, but as a historic record it serves to consistently capture management disclosure over a long-time period. Future research, adopting an econometric approach, could further test the linkages between leadership change, strategic shift and IC-related disclosure. Practical implications – The research reveals how IC-related disclosure shifts to reflect leadership and strategic change within a case company. Through such disclosure, the authors are able to gain greater insight into how a specific business seeks to create value drawing on the components of IC underpinning corporate strategy. Originality/value – The research provides new insights into IC disclosure by mapping its content and emphasis against changes in corporate strategy. This has contemporary significance due to the wider disclosure debate concerning strategy and value creation in the annual report, for instance through integrated reporting. Further, the research shows the value of annual reports for longitudinal disclosure research.

The Strategies of Mineral and Chemical Companies in Terms of the Modern Global Market

~ ~ ~ The development of economy in terms of globalization, intensification of competition on the world mineral commodity market, reduction in quality of resource base, growth of innovative industries and technologies provide changes in corporate strategies of the global mineral and chemical companies based on the new strategic competitive advantages. The dynamic of the traditional markets and emerging of new industrial markets and innovative facilities of complex balanced usage of the mineral resources to combine their resources effectively, to develop new business models to implement new strategies. The research objective is to forecast export strategies of the head phosphate producers according with globalization of the phosphate market. Methods. Integration factors and expected changes in external environment were estimated. All data related to the consolidation and acquisition of companies in mineral and chemical industry for 5 years was picked up and analyzed. The statistical analysis of demand factors was made. A review of the rare-earth elements was carried out. Key results of the research: new integrative factors and operating regularities of the mineral resources markets were found out, the complex use of the system, scenery, situational and monetary approaches to management was put forward, the global growth-stimulating factors were found out and a forecast of the global phosphate market's development for three main segments was made, the capabilities of complex use of mineral raw material were found out based on the generalized conditions and factors of manufacturing new and traditional types of product of mineral and chemical companies.

Enterprise Challenge Funds for Development: Rationales, Objectives, Approaches

Enterprise challenge funds use overseas aid to subsidise private investment in poverty-reducing business ventures in developing countries, where such ventures have good medium-term prospects of commercial viability but would probably have been left on the shelf without subsidies. These funds are viewed with instinctive affection by politicians and international development agencies and have a standard set of characteristics, which we describe. Nevertheless, there is considerable confusion about what international development agencies should be seeking to achieve by means of them, and how. We argue the main source of confusion is a failure to distinguish clearly between what we term enterprise development and business modification objectives, and the rationales and instruments appropriate to each. Enterprise development, in this context, involves reducing risks which impede the establishment or expansion of innovative, poverty-reducing, small- to medium-scale business enterprises. Investment projects should be managed and outcomes assessed on a portfolio basis, without excessive post-financing engagement and with a concentration on certain countries and/or sectors. Business modification, by contrast, involves strengthening incentives for the adoption of poverty-reducing business strategies by established (often multinational) firms, through changes at the margin. Here public subsidies do not reduce risk; rather they provide incentives for firms to take pro-poor investment decisions, and thereby facilitate changes in corporate strategy. In this case, proposals should be solicited from the widest possible field and projects supported should be few, substantial and closely managed. We do not seek to assess claims as to the impact of past and present enterprise challenge funds — the evidence base is too slim — but we argue future such mechanisms are more likely to succeed if they single-mindedly pursue one or the other of the above objectives, and shape themselves accordingly.

Large Mineral and Chemical Companies and their Reaction to Calls of Global Economy

The development of economy in terms of globalization, growth of innovative technologies provide changes in corporate strategies of the mining global companies. The research objective is to forecast export strategies of the head phosphate produ cers. Key results of the research: new regularities of the mineral resources markets were found out; approaches to management of companies was put forward; a forecast of the global phosphate market’s development was made; factors of manufacturing new and traditional types of product were found out.

Talent wants to be free: why we should learn to love leaks, raids, and free riding

This timely book challenges conventional business wisdom about competition, secrecy, motivation, and creativity. Orly Lobel, an internationally acclaimed expert in the law and economics of human capital, warns that a set of counterproductive mentalities are stifling innovation in many regions and companies. Lobel asks how innovators, entrepreneurs, research teams, and every one of us who experiences the occasional spark of creativity can triumph in today's innovation ecosystems. In every industry and every market, battles to recruit, retain, train, energize, and motivate the best people are fierce. From Facebook to Google, Coca-Cola to Intel, JetBlue to Mattel, Lobel uncovers specific factors that produce winners or losers in the talent wars. Combining original behavioral experiments with sharp observations of contemporary battles over ideas, secrets, and skill, Lobel identifies motivation, relationships, and mobility as the most important ingredients for successful innovation. Yet many companies embrace a control mentality--relying more on patents, copyright, branding, espionage, and aggressive restrictions of their own talent and secrets than on creative energies that are waiting to be unleashed. Lobel presents a set of positive changes in corporate strategies, industry norms, regional policies, and national laws that will incentivize talent flow, creativity, and growth. This vital and exciting reading reveals why everyone wins when talent is set free.

English

  We selected a sample of 187 family-controlled, small- and medium-sized Italian companies and gathered financial information about them. Then, we collected data on the strategic change and the recruitment of members to the boards of these family-owned firms. First of all, through multiple regression analysis of the data collected, we demonstrated that recruitment of new outside directors (in substitution or addition) onto the board is positively associated with strategic change. Family SMEs, which facilitate change in corporate strategy through changes to the set of outsiders on their boards, are controlled by family owner-managers who select board members in response to the specific strategic requirements of their firms. Successively, we analysed the financial performances which are associated with the recruitment of outsiders to the boards of the SMEs in the sample and, in this way, we found that the simple presence of outsiders is not sufficient to increase the firm’s financial performance since the firms which achieve the best results are those which are the most dynamic in making changes to the set of outsiders on their boards. Firms which choose outsiders to facilitate change in corporate strategy have greater capability to address changes in their environment and meet the challenges therein. In conclusion, from a dynamic perspective, addition/substitution of outsiders to boards can move the SMEs in the required direction, toward an efficient response to dynamic market conditions and, therefore, towards a more successful performance.   Key words: Strategy, governance, addition/substitution of outsiders

Narrative approach to corporate strategy: empirical foundations

PurposeThis paper aims to present theoretical and empirical foundations for the use of a particular type of narrative skillfully deployed by senior leaders in an organization as an effective tool for creating, disseminating and executing corporate strategy.Design/methodology/approachThe paper presents original research on the effectiveness of the use of a “springboard story” as a leadership tool.FindingsData are presented to substantiate that a “springboard story” presentation of corporate strategy and competitive advantage is more effective at producing a consistent and confident choice of competitive advantage among an audience than a presentation of corporate strategy using a PowerPoint style, bulleted list approach. Theoretical implications for leaders leading change, especially change in corporate strategy, are suggested.Originality/valueThe paper explores the implications for the practical use of this type of narrative in strategy implementation and execution by leaders.

Shareholder Heterogeneity and Conflicting Goals: Strategic Investments in the Japanese Electronics Industry

This article investigates the effects of the changing institutional environment on strategic orientations of Japanese electronics firms during the 1990s. We examine the effects of three different types of shareholders on strategic directions of their invested firms. The first one, foreign portfolio investors, characterizes the emerging influence that pressed for change in corporate strategies. The two domestic shareholders, corporate investors and financial institutions, represent the conventional forces for continuity. Between the two domestic forces, though, while corporate investors attempted to maintain status quo, financial institutions have shifted towards market-oriented behaviour of investment. Specifically, we explore: (1) the influence of each type of shareholder on a firm's diversification strategy and capital commitment; and (2) the moderating effects of firm performance on the relationships between ownership structure and strategic choices. The results suggest that foreign investors prefer the focused product portfolio and conservative capital commitment. They also prefer the reduction of capital investment when the financial performance of their invested firms is poor. Domestic financial institutions are now similarly sensitive to the performance of their invested firms when those firms make strategic investments. By contrast, domestic corporate shareholders remain indifferent to performance, while they aim to maintain relational business ties with invested firms.

La adaptación tecnológica como factor de localización industrial. Una revisión de las investigaciones sobre la industria de hilados de algodón en Cataluña (1772–1885)

This article examines, through the analysis of the cotton spinning industry in Catalonia, the role of technological change in corporate strategies for industrial location in the first stage of the industrialisation process. It highlights the lack of consistency in the relation between territory and technology and demonstrates the influence that both the technological system adopted and the territorial features exert on the industrial location decision-making process. Through the review of the most recent bibliography, the article establishes that the location of the cotton spinning industry in Catalonia was determined by the existence of a preestablished industrial framework and by the relative change in the cost that factors such as labour, energy and transport experienced due to the introduction of foreign technology.

Globalfocusing: corporate strategies under pressure

Abstract On the global stage, competitive advantages are gained by creating, transferring, and exploiting competences across operations and locations internationally. In consequence, conglomerates are redesigning their strategies to focus on core businesses, yet with a global scope. De‐diversification and internationalization thus complement each other in a process of ‘globalfocusing.’ This paper outlines the shifts in the relative barriers to entry to countries and industries that have been driving these processes of change in corporate strategies on the global stage. On this basis, implications of the change in global strategy are derived for decision‐makers in both business and politics who are operating in the volatile global economy. Copyright © 2009 John Wiley & Sons, Ltd.

Corporate Strategies under Pressures of Globalization: Globalfocusing

On the global stage, competitive advantages are gained by creating, transferring and exploiting competences across operations and locations internationally. In consequence, conglomerates are redesigning their strategies to focus on core businesses, yet with a global scope. De-diversification and internationalization thus complement each other in a process of globalfocusing. This discussion paper outlines the shifts in the relative barriers to entry to countries and industries that have been driving these processes of change in corporate strategies on the global stage. On this basis, implications of the change in global strategy are derived for decision makers in both business and politics, reflecting the challenges of the global financial crisis.

BUILDING A CORPORATE SUPPLY FUNCTION

The chief purchasing officer (CPO) plays a critical role in ensuring supply contributes effectively to organizational goals and strategies. The selection of the individual who will become the company's first CPO is especially important. A reporting line establishment occurs at the same time as an appointment of a first CPO when a large organization centralizes a previously decentralized supply function. Using case‐based methodology, this research in large North American and European organizations examined 26 appointments of the first CPO and corresponding reporting line establishments. Data collection and analysis covered six aspects: drivers, CPO background, reporting line, the key decision makers and influencers involved in the decision, tenure of the first CPO and tenure of the first reporting line. It was found that changes in corporate strategy accounted for nearly 80 percent of the first CPO appointments and the CEO had a major say in decisions related to who would be hired as the first CPO as well as his or her reporting line. Almost 30 percent of internally recruited CPOs did not have any supply experience. However, externally recruited CPOs always had supply experience, but did not necessarily come from a CPO position. The CPOs reported to a variety of different positions, with the CEO and VP shared services being the most popular. The average tenure for the first CPO was more than one year longer than his or her reporting line. The potential implications for supply executives are explored. Opportunities for future research are also identified.