Competitive and Collaborative Strategies

General Environment
Social, Technological, Economic, Ecological, and political forces

Task Environment
Customer and buyer power, rivalry among competitors, substitute products/services, and potential new entrants

Enacted Environment
Managerial perceptions and representations of the environment

192

Dynamism - the extent to which the environment changes unpredictably

Complexity - the number of significant elements the organization must monitor Information Uncertainty - the extent to which environmental information is ambiguous Resource Dependence - the degree to which an organization relies on other organizations for resources

193

Low Low

Resource Dependence

High

Minimal environmental constraint and need to be responsive to environment

Moderate constraint and responsiveness to environment

Information Uncertainty
Moderate constraint and responsiveness to environment Maximal environmental constraint and need to be responsive to environment

High
194

Uniqueness

Value

All organizations possess unique bundles of resources and processes that represent the source of competitive advantage Organizations that arrange their unique resources and processes to produce products or services that have value (low cost, desirable features) Competitive advantage is sustainable when it is difficult to duplicate

Difficult to Imitate

195

Strategic Analysis Strategic Choice Designing the Strategic Change Plan Implementing the Strategic Change Plan

196

Strategy S1

Strategic Change Plan Implementation

Strategy S2

Organization O1

Organization O2

Strategic Analysis

Strategic Choice
197

Strategic Analysis

Strategic Choice

Assess the readiness for change and top managements ability to carry out change Diagnose the Current Strategic Orientation Top management determines the content of the strategic change

Designing the Strategic Change Plan

Implementing the Strategic Change Plan

Development of a comprehensive agenda to achieve the change

198

Merger - the integration of two previously independent organizations into a completely new organization Acquisition - the purchase of one organization by another for integration into the acquiring organization. Distinct from strategies for collaboration, such as alliances and networks, because at least one of the organizations ceases to exist.
199

Diversification Vertical integration Gaining access to global markets, technology, or other resources Achieving operational efficiencies, improved innovation, or resource sharing

1910

Pre-combination Phase

Legal Combination Phase

The organization must identify a candidate organization, work with it to gather information about each other, and plan the implementation and integration activities The two organizations settle on the terms of the deal, gain approval from regulatory agencies and shareholders, and file appropriate legal documents

Operational Combination Phase

Implementing the operational, technical and cultural integration activities

1911

Involve two or more organizations who agree to work together to achieve their objectives Align and coordinate organization strategies, goals, structures, and processes as they become interdependent Allow organizations to perform tasks that are too costly and complicated for single organizations to perform Also known as transorganizational systems, including alliances and networks

1912

When two organizations formally agree to pursue a set of goals There is sharing of resources, intellectual property, people, capital, technology, capabilities or physical assets Common alliances are licensing agreements, franchises, long-term contracts, and joint ventures

1913

Alliance Strategy Formulation Partner Selection

Clarify the business strategy and why an alliance is needed Leverage similarities and differences to create competitive advantage Build and leverage trust in the relationship

Alliance Structuring and Start-up

Alliance Operation and Adjustment

1914

Involves three or more companies joined together for a common purpose Each organization in the network has goals related to the network as well as those focused on self-interest Characterized by two types of change: creating the initial network (transorganizational development) and managing change within an established network
1915

Identification
Who should belong to the transorganizational System (TS)? Relevant skills, knowledge, and resources Key stakeholders

Convention
Should a TS be created? Costs and benefits Task perceptions

Organization
How to organize for task performance? Communication Leadership Policies and procedures

Evaluation
How is the TS performing? Performance outcomes Quality of interaction Member satisfaction

1916

Create instability in the network Manage the tipping point

The Law of the Few Stickiness The Power of Context

Rely on self-organization

1917