Managing Your Strategic Responsiveness to the Environment
Managing Your Strategic Responsiveness to the Environment
Benjamin Calhoun Ball
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Similarly, a strategy could deteriorate even if it becomes less risky, if returns decline below a level acceptable to management. 5. Provide a Framework for the Improvement of Strategy Two key environmental factors usually affect a divi- sion's plan. o Competitive strength (e. G. , relative market share). 21 o Business Attractiveness (e. G. , growth rate of primary 3 demand) . Both these factors can be considered in the predictability/ discretionary response matrix, and the results of such anal...ysis can help to improve strategy. Competitive strength will typically be affected by moves of the firm's competitors, such as changes in price, the introduction of a new product, discovery of new pro- cesses, of entry into a new market. In some instances one might get "early warnings" of upcoming competitive moves, but usually they are discrete one-ship actions which are difficult to predict . Increasing R&D efforts and competi- tive surveillance can improve a firm's ability to predict any major actions by competitors, but only to a degree.
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