CORPORATE STRATEGY IN PROJECT BASED INDUSTRIES. Reading. Understanding Organisations, Charles Handy Construction Management in Practice, Langford, Fellows, Newcombe & Urry Construction Management, Newcombe, Langford & Fellows Michael Porter. Some definitions:.
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Corporate strategy is
"the basic characteristics of the match an organisation achieves with its environment.”
Strategic decisions are primarily concerned with external, rather than internal, problems of the firm and specifically with selection of the product-mix which the firm will produce and the markets to which it will sell. To use an engineering term, the strategic problem is concerned with establishing an 'impedance match' between the firm and its environment ………….
it is the problem of deciding what business the firm is in and what kinds of business it will seek to enter
H Igor Ansoff. "Corporate Strategy" 1965
What business strategy is all about - what distinguishes it from all other kinds of business planning is, in a word, competitive advantage. Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to enable the company to gain, as efficiently as possible, a sustainable edge over its competitors. Corporate strategy thus implies an attempt to alter a company's strength relative to that of its competitors in the most efficient way......
K. Ohmae: "The Mind of the Strategist" 1982
After Grinyer, 1972
In what circumstances is a shrinkage strategy appropriate?
Companies must seek sustainable competitive advantage through either:
A company may target its competition:
(Such firms lose competitive advantage, and are usually heading toward poor performance)
Hence, continuous innovation and change to upgrade competitive position is desired
It is used to:
Analyzing strengths/weaknesses, opportunities/threats
Improved internal efficiency, decision making processes, productivity
How do we develop it?
Give me an example from your industry or company
Past 5 years:
The next ten years
Undertake an analysis of the forces affecting your company
Undertake a SWOT analysis of your company