Temple University BA 951 Discussion – The strategy process Ram Mudambi Temple University (USA)

© Ram Mudambi, Temple University and U of Reading, 2001 Is strategic planning worthless? Strategic Flexibility – the key to competitive advantage in the 21 st century The capability of the firm to pro-act or respond quickly to changing competitive conditions. –‘I’d rather be roughly right and fast than exactly right and slow. The cost of delay is greater than the cost of the occasional mistake.’ – Percy Barnevik, Former CEO, ABB –‘In an increasingly networked world economy, it is not the big that will beat the small, but the fast that will beat the slow.’ – John T. Chambers, CEO, Cisco Systems

© Ram Mudambi, Temple University and U of Reading, 2001 Two groups of drivers Technological revolution –Rate of technological progress –Knowledge intensity of output –Positive feedback industries (network economies) Globalization –Worldwide economic development –Falling trade barriers –Collapse of state run restrictive systems

© Ram Mudambi, Temple University and U of Reading, 2001 Components of strategic flexibility Build dynamic core capabilities Focus and develop human capital Effectively use new technologies –Manufacturing –Information Value creating strategies –global, cooperative New organizational structures –Horizontal, learning, loose