FINANCE
CHAPTER 8
Strategic Change: Implementing Strategies to Build and Develop a Company
0LEARNING OBJECTIVES
10. Describe the main steps involved in the strategic change process.
20. Demonstrate how to analyze a company’s set of businesses from a portfolio of competences perspective
30. Review the advantages and risks of implementing strategy through (1) Internal new ventures, (2) acquisitions, and (3) strategic alliances
40. Discuss how to limit the risks associated with internal new ventures, acquisitions, and strategic alliances.
50. Appreciate the special issues associated with using a joint venture to structure a strategic alliance.
LECTURE OUTLINE
I0. Overview
A0. This chapter deals with the nature of strategic change and the obstacles that may hinder managers’ attempts to change company strategies.
B0. The chapter also deals with the question of which businesses or industries a company should participate in and uses the portfolio of competences approach to help with this task.
C0. Another focus is on the methods or vehicles used to enter new businesses or entry. This might take place through internal new venturing, which is starting a business from scratch; acquisition, or buying an existing business; and strategic alliances established with the help of a partner.
II0. Strategic Change
A0. Strategic Change is the movement of a company away from its current state to some future state to increase its competitive advantage and profitability.
B0. There several types of strategic change. Among them are:
10. Reengineering, a process in which managers focus not on the company’s functional activities, but on the business processes underlying the value-creation process. a0) A Business process is any activity that is vital to delivering goods and services to customers quickly or that promotes high quality or low costs and cuts across several functions simultaneously. b0) Examples of business processes are: order processing, inventory control, or product
Strategic Change: Implementing Strategies to Build and Develop a Company
0LEARNING OBJECTIVES
10. Describe the main steps involved in the strategic change process.
20. Demonstrate how to analyze a company’s set of businesses from a portfolio of competences perspective
30. Review the advantages and risks of implementing strategy through (1) Internal new ventures, (2) acquisitions, and (3) strategic alliances
40. Discuss how to limit the risks associated with internal new ventures, acquisitions, and strategic alliances.
50. Appreciate the special issues associated with using a joint venture to structure a strategic alliance.
LECTURE OUTLINE
I0. Overview
A0. This chapter deals with the nature of strategic change and the obstacles that may hinder managers’ attempts to change company strategies.
B0. The chapter also deals with the question of which businesses or industries a company should participate in and uses the portfolio of competences approach to help with this task.
C0. Another focus is on the methods or vehicles used to enter new businesses or entry. This might take place through internal new venturing, which is starting a business from scratch; acquisition, or buying an existing business; and strategic alliances established with the help of a partner.
II0. Strategic Change
A0. Strategic Change is the movement of a company away from its current state to some future state to increase its competitive advantage and profitability.
B0. There several types of strategic change. Among them are:
10. Reengineering, a process in which managers focus not on the company’s functional activities, but on the business processes underlying the value-creation process. a0) A Business process is any activity that is vital to delivering goods and services to customers quickly or that promotes high quality or low costs and cuts across several functions simultaneously. b0) Examples of business processes are: order processing, inventory control, or product