Chandler and Strategy

In: Business and Management

Submitted By msnyder512
Words 475
Pages 2
ALFRED CHANDLER AND HIS IDEAS ON STRATEGY

History

Alfred Chandler was born on September 15, 1918 and Died May 9, 2007. Chandler throughout his career taught at many prestige schools among which include Harvard School of Business, M.I.T and Johns Hopkins University. He also had several publications of which The Visible hand and Strategy and Structure is the most well-known of which in 1977 he won the Pulitzer Prize for the Visible hand.

Chandler’s primary contribution to strategy was with his idea of decentralization. Chandler examined the large corporations of the time like Du Pont, Sears and General Motors and how the marketplace demand changed to traditional functional organization to a more decentralized one. His felt that by decentralizing a large organization. It would allow the CEO’s and upper management to be removed from the mundane everyday task, and take that time and focus it towards other areas. By creating division within an organization it allowed for CEO’s and others to focus on planning and evaluation of the company’s success or failures.

Chandler also felt that strategy came before structure. As he felt that an organization should have a strong strategy and therefore could plan and develop the structure around their structure which this idea triggered what some called the “Managerial Revolution”, where managers became more aware of the marketplace and began to do stronger forecasting and planning , so that even though strategy and structure have come to be complexly intertwined they are able to develop forward thinking strategies that will allow them to make organizational changes and moves, in advance of rolling out new products or services in order to enter the marketplace with a strong foot, rather than just jumping in and waiting to see how it reacts.

Even as time has passed you can see Chandler’s influence in almost any…...

Similar Documents

Strategy Management

...OUTLINE AND AIMS This course provides the student with an understanding of how international business strategy fits into the organisation and running of a company or multi-company corporation. The course consists of 8x three-hour sessions of lectures and case studies. The aim of the module is to introduce the student to the way in which a firm can achieve sustainable competitive advantage through strategy. LEARNIING OUTCOMES By the end of the course students should be able to (1) understand the concepts of strategic management, (2) evaluate the factors that need to be considered in analysing a firm’s external environment, (3) evaluate the internal core competences of a firm, (4) formulate strategy for the firm, (5) understand the nature of corporate strategy, and (6) understand the nature of international strategy. Additional learning outcomes are specified for each session. COURSE CONTENT The course consists of nine sessions: (1) What is strategy? (2) The Market Positioning Approach (3) The Resource Based View of Strategy (4) The Institution Based View of Strategy (5) Diversifications and Acquisitions (6) Strategic Alliances and Networks (7) International Strategy (8) Globalisation and MNC organisation structures (9) Conclusion The course will be taught over nine sessions of 3hrs, namely a lecture of 2hrs and a seminar of 1hr. The lectures are used to illustrate the key points under each topic as well as real business examples. Seminars will be used...

Words: 1703 - Pages: 7

Strategy

...được là khách hàng thân thiết của công ty    Question 11  Mục tiêu cực đại giá trị cho cổ đông là một mục tiêu cơ bản trong sứ mệnh   a. Nguy hiểm vì nó tiềm ẩn các nguy cơ theo đuổi các mục tiêu ngắn hạn.   b. Sai, vì nó chỉ tính tới một bên hữu quan   c. Đúng   d. Sai   e. Đúng, vì là chỉ tiêu tổng hợp phản ánh các nỗ lực của nhà quản trị    Question 12  Viễn cảnh của công ty   a. Ổn định trong thời gian 5 đến 10 năm   b. Nêu lên một ý nghĩa tồn tại độc đáo.   c. là một mục tiêu để mọi người quyết tâm hoàn thành   d. Ổn định trong thời gian 10 đến 20 năm    Question 13  Vai trò của mục đích cốt lõi   a. định hướng   b. tạo khác biệt   c. lôi cuốn khách hàng   d. dẫn dắt và thôi thúc    Question 14  Nghiên cứu của Chandler cho rằng:   a. nếu cấu trúc không khù hợp với chiến lược, kết cục sẽ không hiệu quả   b. Nếu doanh nghiệp không có khả năng độc đáo nhưng ở trong môi trường tốt nó vẫn có lợi nhuận cao   c. Nếu nhà quản trị không có tầm nhìn xa không thể có chiến lược   d. Nếu doanh nghiệp có năng lực cốt lõi nó có thể giành lợi thế cạnh tranh    Question 15  Chiến lược công ty là:   a. Kế hoạch giành lợi thế cạnh tranh cho công ty   b. Chiến lược tổng thể cho tất cả các chức năng quản trị của công ty   c. Một kế hoạch dài hạn cho công ty   d. Kế hoạch hướng tới mục đích và phạm vi tổng thể của tổ chức   e. Chiến lược cạnh tranh trên thị trường    Question 16  Quản trị chiến lược đem lại lợi ích sau:   a. Đóng góp tích cực vào sự......

Words: 2555 - Pages: 11

Strategy

...SINHA SABYASACHI@IIML.AC.IN 2 Agenda for today        Objectives of SM How do we achieve the objectives Major takeaways Key Success Factors Performance Evaluation The administrative norms What is Strategy and Strategic Management Process Prof. S. Sinha, Indian Institute of Management - Lucknow January 5, 2014 3 Objectives of SM  Develop the competencies to practice strategy – to develop abilities of a general manager   Ability to disintegrate and integrate (microscopic and telescopic views) Ability to balance between what your mind say (the rational manager), and what your heart says ( the emotional leader) Ability to see, think, and empathize a situation from multiple perspectives, and decide accordingly, knowing the trade-offs made in the process     Across time (long term and short term) Across functions Across hierarchy Prof. S.Sinha, Indian Institute of Management - Lucknow January 5, 2014 4 Objectives of SM  Integrate the learning from various functional management courses (tools and concepts) Offer strategy contexts for additional learning in functional courses, and develop the ability to think across time, function, and hierarchy Understand frameworks and check lists helpful in strategy formulation and review   Prof. S.Sinha, Indian Institute of Management - Lucknow January 5, 2014 5 How do we achieve these objectives  Involve you in strategic decision making situations...

Words: 1285 - Pages: 6

Strategy

...Conclusion 8   Introduction To establish strategy is an indispensible part of any organisation. It plays an important role in directing and helping organisation to achieve the objectives. In this context, the strategy is considered as the way which organisations communicate with the competitive landscape to obtain the above average return. Therefore, to build an effective strategy, there is a need for profoundly understanding the competitive environment and estimating correctly the resource of organisation. This essay will examine the role of strategy as a “bridge” in order to assist firms to reach their targets in the competitive landscape. Definition There are many ways to definite strategy, however, it can be found that almost of them accept that ‘Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage’. (Hitt, Ireland and Hoskinsson 2009). Organisational resources include skills of employees, finances, capital equipments, patents and talented managers (Hit, Ireland and Hoskinsson 2009). Organisation resource is defined as ‘an asset, competency, process, skill, or knowledge controlled by the corporation’ (Wheelen and Hunger 2002). Competitive landscape is more complex in the context of globalisation; however, the fundamental constituents of landscape are customers, suppliers and competitors. Method To prove the ‘bridge’ characteristic of strategy between organisation and......

Words: 1547 - Pages: 7

Strategy

...excitement, expostulating about a thick book he held in his hands. “Here it is,” he exclaimed, “it cost $2 million. The best strategy ever! Now the question is, ‘is it implementable?’” We then watch his face fall as, one by one, his executives consider the question and reply “No.” Numerous studies have noted the very weak relationship of strategy formulation to strategy execution. Fortune Magazine stated that “Less than 10% of strategies effectively formulated are effectively executed.” Companies large and small worldwide spend billions of dollars each year on strategy formulation. A search of the World Wide Web using Google™ took less than 1/3 of a second to return more than 1.3 million hits on strategy consulting, ranging from the “Big 6” firms to boutique firms specializing in strategy. Interestingly, a similar search for strategy implementation consulting returned less than 500,000 hits. Even allowing for overlap this is a significant disconnect. If Fortune is correct, only one of ten companies that do an effective job of formulating strategy are doing equally effective jobs of implementing it. For the rest, presumably, the well-crafted strategy is lost in the press of day-to-day tactical concerns or is left to languish in a report on the CEO’s bookshelf. Yet very few people would deny that, in today’s fast-moving fast-changing business world, strategy, with its long-range perspective, is critical. By analogy, if the guidance system on an airplane or ocean liner is not......

Words: 1016 - Pages: 5

Strategy

...Slide 1.1 1: Introducing Strategy Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011 Slide 1.2 Learning outcomes • Summarise the strategy of an organisation in a ‘strategy statement’. • Identify key issues for an organisation’s strategy according to the Exploring Strategy model. • Distinguish between corporate, business and operational strategies. • Understand how different people contribute to strategy at work. • Appreciate the contributions of different academic disciplines and theoretical lenses to practical strategy analysis. Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011 Slide 1.3 Definitions of strategy (1) • ‘..the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resource necessary for carrying out these goals’ Alfred Chandler • ‘Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value’ Michael Porter Sources: A.D. Chandler, Strategy and Structure: Chapters in the History of American Enterprise, MIT Press, 1963, p. 13 M.E. Porter, ‘What is strategy?’, Harvard Business Review, 1996, November–December, p. 60 Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011 Slide 1.4 Definitions of strategy (2) • ‘..a pattern in a stream of......

Words: 1670 - Pages: 7

Business Strategies

...BUSINESS STRATEGIES Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.[1] Strategic management provides overall direction to the enterprise and involves specifying the organization's objectives, developing policies and plans designed to achieve these objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision making in the context of complex environments and competitive dynamics.[2] Strategic management is not static in nature; the models often include a feedback loop to monitor execution and inform the next round of planning.[3][4][5] Harvard Professor Michael Porter identifies three principles underlying strategy: creating a "unique and valuable [market] position", making trade-offs by choosing "what not to do", and creating "fit" by aligning company activities with one another to support the chosen strategy.[6] Dr. Vladimir Kvint defines strategy as "a system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully."[7] Corporate strategy involves answering a key question from a portfolio perspective: "What business should we be in?" Business strategy involves answering......

Words: 11557 - Pages: 47

Strategy

...Confirming Pages PART 1 SA M PL E C H AP TE R Concepts and Techniques for Crafting and Executing Strategy tho29503_ch01_001-017.indd 1 12/10/12 4:52 PM Confirming Pages WHAT IS STRATEGY AND WHY IS IT IMPORTANT? AP Learning Objectives TE R CHAPTER 1 Learn what we mean by a company’s strategy. LO 2 Grasp the concept of a sustainable competitive advantage. LO 3 Develop an awareness of the four most basic strategic approaches for winning a sustainable competitive advantage. LO 4 Understand that a company’s strategy tends to evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. LO 5 Learn why it is important for a company to have a viable business model that outlines the company’s customer value proposition and its profit formula. LO 6 Learn the three tests of a winning strategy. M PL E C H LO 1 SA Strategy means making clear-cut choices about how to compete. Jack Welch  – Former CEO of General Electric If your firm’s strategy can be applied to any other firm, you don’t have a very good one. David J. Collis and Michael G. Rukstad  – Consultants and professors One must have strategies to execute dreams. Azim Premji  – CEO Wipro Technologies and one of the world’s richest people tho29503_ch01_001-017.indd 2 12/10/12 4:52 PM AP Many factors enter into a full explanation of a company’s performance, of course. Some come from the external environment; others are internal to the......

Words: 7702 - Pages: 31

Ma22-45 Mr Chandler, the Production Supervisor

...MA22-45 Mr Chandler, the production supervisor Click Link Below To Buy: http://hwcampus.com/shop/ma22-45-mr-chandler-the-production-supervisor/ Mr Chandler, the production supervisor, bursts into your office, carrying the company's 2014 performance report and thundering. "There is villainy here sir! And I shall get to the bottom of it. I will not stop searching until I have found the answer! Why is Mr. Richards so down on my department? I thought we did a good job last year. But Richards claims my production people and I cost the company $31,500! I plead with you, sir, explain this performance report to me." Trying to calm Chandler down, you take the report from him and ask to be left alone for 15 minutes. The report is as follows: DICKENS COMPANY, LIMITED Performance Report For Year 2014 Actual Unit Sales Sales Less Manufacturing Costs Direct Materials Direct Labour Manufacturing Overhead Total Gross Profit Less Selling and Admin Expenses Selling (all fixed) Administrative (all Fixed) Total Net Income Performance Summary Budgeted Net Income Sales Department Variance Sales Revenue Selling Expenses Admin Department Variances Production Department Variances Actual Net Income (a) (b) Budget 7,500 Variance 5,000 $ 262,500 $ 225,000 $ 37,500......

Words: 359 - Pages: 2

Strategy

...11:43 am Page 133 133 EUROPEAN BUSINESS JOURNAL The modern roots of strategic management Susan Segal-Horn The term ‘strategy’ is one of the most over-used, and poorly understood, terms in modern business and organisational life. The purpose of this article is to help practising managers understand better what strategy is about, how it has developed in the second half of the twentieth century from much earlier influences and the key contributions made by business schools, academics and consultants to the modern managerial practice of strategy. Strategic management has moved from a rational top-down planning approach, to strategic decision-making as a wider process involving all internal organisational stakeholders to ensure strategies are likely to be effectively implemented in practice. The recent rise of the resource-based approach to strategy helps us understand how two organisations with similar resources may nevertheless develop quite different levels of capability and performance. This article should help managers appreciate why no source of competitive advantage is likely to be sustainable over the longer-term. Introduction Susan Segal-Horn, Professor of International Strategy, Open University Business School This article is based on a revised version of the Introduction to S. Segal-Horn (ed.) The Strategy Reader (2004) 2nd edition, published by Blackwell Publishers, Oxford. Address for correspondence: Professor Susan......

Words: 6013 - Pages: 25

Ma22-45 Mr Chandler, the Production Supervisor

...MA22-45 Mr Chandler, the production supervisor Click Link Below To Buy: http://hwcampus.com/shop/ma22-45-mr-chandler-the-production-supervisor/ Mr Chandler, the production supervisor, bursts into your office, carrying the company's 2014 performance report and thundering. "There is villainy here sir! And I shall get to the bottom of it. I will not stop searching until I have found the answer! Why is Mr. Richards so down on my department? I thought we did a good job last year. But Richards claims my production people and I cost the company $31,500! I plead with you, sir, explain this performance report to me." Trying to calm Chandler down, you take the report from him and ask to be left alone for 15 minutes. The report is as follows: DICKENS COMPANY, LIMITED Performance Report For Year 2014 Actual Unit Sales Sales Less Manufacturing Costs Direct Materials Direct Labour Manufacturing Overhead Total Gross Profit Less Selling and Admin Expenses Selling (all fixed) Administrative (all Fixed) Total Net Income Performance Summary Budgeted Net Income Sales Department Variance Sales Revenue Selling Expenses Admin Department Variances Production Department Variances Actual Net Income (a) (b) Budget 7,500 Variance 5,000 $ 262,500 $ 225,000 $ 37,500......

Words: 359 - Pages: 2

It Strategy

...Executing IP Strategy with ICM Process Implementation By Bruce Story, Senior Advisor, ipCapital Group Introduction: Background from Dow While leading Intellectual Capital Management (ICM) in the Plastics Business at The Dow Chemical Company, I witnessed the value of having a business-aligned IP strategy, implemented early in the development of a new technology platform. The difference between leaving IP development to the ad hoc process dependent on the initiative of the inventor and using IP strategy to guide R&D and new business development can be immense. The high performance elastomers business platform developed at Dow in the last decade is worth over a billion dollars. With the increasingly global competitive environment, this never would have been sustained without the implementation of an IP strategy that took into account the business strategy, competitors’ patenting strategies, the product value chain, and providing a closecoupling of actionable IP strategy to the R&D staff. Previously, as is common in many companies, the IP strategy was basically a legal strategy for obtaining patents. Dow’s attorneys were very good at getting patents granted. However, the disclosing of inventions was left to the initiative of the inventors who were often too busy with their projects to document their inventions. The “Inventor-of-the–Year” Award went to the inventor who received the most U.S. patents in the previous year. Quantity was being rewarded rather than IP...

Words: 6095 - Pages: 25

It Strategies

...IT Strategies? A Study on how organizations describe their IT Strategies. Masters Thesis in Business Administration (FED 006) Author Stephen Rupia Lyabandi Executive Summary Title: Do organizations have IT Strategies? A Study on how organizations describe their IT Strategies. Author: Stephen Rupia Lyabandi Tutor: Anders Hederstierna Problem: The research problem of this study is lack of insight on how organizations describe their IT strategies in relation to other strategies. IT strategy continues to be a major challenge for Information Technology intensive organizations and managers. Over the last two decades, the way researchers on information systems have viewed and analyzed IT strategy in organizational systems has not significantly been modified. Recent studies show that one of the main problems is that the concept of IT strategy has been around for nearly two decades and although many organizations have been using it, the meaning and reference of the idea remains elusive. Those who have attempted to define it have not reached an agreement. Purpose: The purpose of this study is to define the problem and explore whether organizations have IT strategies, and how these are describe in relation to other strategies. This research study also investigates how these organizations incorporate IT components into their strategies.......

Words: 20248 - Pages: 81

Chandler Police Department

...about the Chandlers police department sex crime unit. The history will be mentioned as well as the people that made a difference within the department. Also, I will be talking about the sex crime unit itself and the responsibilities that the detectives have. The sex offender notification program that they are in charge of will also be mentioned as well as the crimes against adults and the crimes against children that the detectives are responsible for. This paper will also define what sex crimes are and give several examples of different types of sex crimes. The sex crimes that are assigned to Chandlers Sex Crime Unit will also be said. Chandlers Police has conducted some investigation in sex crime cases and a couple of these will be motioned in this paper. I will describe some charts and statistics that I have found like rate and of crime in Chandler for crimes like rape, murder, and violent crimes. Chandler Police Sex Crime Unit The Chandler Police Department in Arizona is known to be one of the best police stations in the state. In November of 1914, Charles M. Beckham was elected as one of the first Constables. In 1923, the first City Hall was built and it was the new home for the Police Force/Jail, the Mayor’s office, City Clerk’s office, City Council Chambers and the Magistrate and his courtroom, (Health, 2005). During the 1970s, the second Police/Court facility was built and the Police and Fire Department were combined and renamed the “Chandler......

Words: 1450 - Pages: 6

Marketing Strategies

...Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability), examining Qantas value chain analysis by evaluating the primary and support activities that the company performs and analysing its weakness and strengths. Finally, Qantas’ generic business strategies are also going to be examined by analysing it strategic statement and......

Words: 3104 - Pages: 13

Finalmouse Air58 Ninja - Cherry Blossom Red Preorder. International Shipping! | Iran (Islamic Republic of) | b-Vibe Remote Control Black Rimming Plug 2 W/ Free Lube