New PDF release: Strategy for Action – I: The Logic and Context of Strategic

By Giorgio Gandellini

The leading edge and precise function of this publication is that it doesn't include theoretical idea that can't be translated into perform. The version which introduces this quantity units the degree for addressing the main levels of the strategic administration procedure: environmental research, technique formula and improvement, process assessment and keep an eye on. Its conceptual and operational constitution is defined within the first half, including a essentially orientated definition of process, and a quick dialogue of the good judgment and advantages of the judgmental modeling method of determination making. the second one half seriously addresses the classical ways to the research of the exterior and inner environmental components, that have an impression at the “functioning” of the elemental version, i.e. the structural features of the context, and the firms’ technical, organizational, monetary, and human assets, together with the interpretation into operational versions of in a different way particularly theoretical concepts.

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Extra resources for Strategy for Action – I: The Logic and Context of Strategic Management

Sample text

We should note that by ‘‘traceable common costs’’ we mean fixed common costs that can be reasonably attributed to the businesses, for example based on the relative portion of time systematically allocated to each business by a manufacturing or a sales manager (and not according to the absurd accounting practice of allocating these costs based, respectively, on manufacturing outputs or sales): in practice, this allocation represents the opportunity cost of using these resources in a specific direction (business) instead of another.

The template below contains examples, again not exhaustive, of ecological factors that a firm might choose to analyze (Fig. 6). Compared to the stable environmental conditions of the past, the current dynamic context brings with it some dramatic changes in the conditions in which firms operate. To better adapt their strategies to the macro-economic transformations, firms must continuously monitor the environment and evaluate the current and predictable opportunities and threats. It may still be useful for companies to ask themselves the following questions (adapted from Andrews 1980): 1.

The logical framework represented in Fig. 7 could therefore be helpful for classifying the environmental factors that should be scanned, monitored or managed with immediate action. 52 2 External and Internal Analysis of the Environment Fig. 7 Probability of occurrence and expected impact matrix This framework can also be useful for screening the external factors that will be considered in the SWOT analysis discussed under Sect. 5. 3 Industry and Competitive Environment In order to obtain a complete understanding of an industry and its competitive environment, firms have to invest time and financial resources to collect, process, analyze and then monitor a large amount of data and information.

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