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How corporate planning adapts and survives
tomers' real needs. One implication is the need for marketing to take a leading role in long-term strategy making. The marketer must be able to think strategically, to see the market from the customer's perspective, to identify opportunities and to develop rapport with the customer.
ing the network mode of governance. The network mode is viewed at three levels--intrafirm, interfirm and institutional--to illuminate the inherent tension between cooperation and competition at each level, and to explore the implications of this tension for industrial dynamics.
A.W.H. GRANTand L.A. SCHLESINGER
Realize your customers' full profit potential Harvard Business Review 73 (5), 59-72 (Sept/Oct 1995) Achieving the full profit potential of each customer relationship should be the fundamental aim of every business. Even using conservative estimates, the gap between most companies' current and full-potential performance is enormous. The usual reason is that the value exchanges are less than optimal. Yet once a company has decided on its ideal behaviour profiles it can calculate the full potential of its target customers and prospect universe. To close the gap means rethinking positioning strategy, investment management, operational processes, and organizational alignment. The opportunity is there and those who act early will gain real benefit. R.I. DOLAN
How do you know when the price is right? Harvard Business Review 73 (5), 174-183 (Sept/Oct 1995) Pricing is managers' biggest marketing headache. An eight step process is suggested to help make better decisions. The value placed by the customer on the product needs to be assessed. Consideration should be given to customize price to reflect the way value is seen. Customer sensitivity to price should be analysed. Any pricing structure should be optimal and competitors' reaction taken into account. Other steps include monitoring prices at the point of transaction, assessing customers' emotional response and analysing whether the returns are worth the cost. The pricing process should both complement the overall marketing strategy and be coordinated and holistic.
PLANNING IN SPECIFIC MANAGEMENT AREAS--MAN UFACTURING
PLANNING IN SPECIFIC MANAGEMENT AREAS--HUMAN RESOURCES
R. COOPE~and M.L. MARKUS
Human Reengineering Sloan Management Review 36 (4), 39-50 (Summer 1995) Japanese soy sauce producers, Toshio Okuno's five techniques for managing major changes are described. By focusing first on changing people's attitudes toward change and encouraging them to be creative, significant improvements in processes and results were achieved. Employees began to suggest ideas for change. The techniques work as an integrated system that allows the company to innovate continuously and present many lessons for making change fun. The organization has the human capacity to help it keep on learning. CHONCJU CHOI
Samsung: reeingeering Korean style Long Range Planning 28 (4), 74-80 (August 1995) Samsung's approach to re-engineering was unique. What proved important were ideas of managerial camaraderie and the commitment to change by the Chairman. The chairman launched his 'new manageInent' programme in 1993. Working time was changed. Staff were expected to undertake selfimprovement projects. Employees were encouraged to spend more time with their families. Product line suspension was used to heighten a sense of crisis and quality management belatedly became the order of the clay. The Samsung experience demonstrates the need to share information, to work in teams, and to be loyal to the corporation. It illustrates the cooperative rather than the competitive nature of business process re-engineering. It emphasizes the strength of determination and leadership on the part of the chairman.
R. GARUDand A. KUMARASWAMY
B. HOULDEN
Technological and organizational designs for realizing economies of substitution Strategic Management Journal 16, 93-109
How corporate planning adapts and survives Long Range Planning 28 (4), 99-108 (August 1995)
(Summer 1995) The systemic nature of technologies makes it difficult, if not impossible, for any one firm to manufacture all components of a technological system. These challenges can be met by designing technological systems that have the potential to yield economies of substitution. These economies can be realized by adopt-
Strategic planning is a mixture of art and science and, contrary to forecasts, the use of strategic planning is expanding relatively quickly. This is shown when the results of a survey made in 1992/93 are compared with a similar one carried out in 1985. Corporate planning must be close to the strategy decision makers. The trend since 1985 has been for corporate planners to report to the finance director. Planning is now more Long Range Planning Vol. 28
December1995
line driven, simpler, with greater focus on the competitive environment and addressing strategic issues. Implementation receives more emphasis. For a corporate planning unit to be successful, it must be seen as a business unit and must involve training. The CEO must assume the responsibility both for the quality of decisions and the effectiveness of implementation. D.A. GARVIN Leveraging processes for strategic advantage Harvard Business Review 73 (5), 77-90 (Sept/Oct 1995) Xerox's Allaire, USA's Herres, SmithKline Beecham's Leschly and Pepsi's Weatherup took part in a round table discussion, the theme of which was business process reengineering. Points that were covered included the reasons w h y each of the firms rethought processes, the response of staff to the changes, the impact on senior management, changes in the way the CEO worked. The participants agreed that the task of getting people to change is difficult and painful and that there is a need to change the culture of the organization. A. FIEGENBAUMand H. THOMAS Strategic groups as reference groups: theory, modeling and empirical examinations of industry and competitive strategy Strategic Management Journal 16 (6), 461-476 (September 1995) A strategic group acts as a reference point for group members in formulating competitive strategy. A partial adjustment model of strategic mobility is developed incorporating the strategic group as a reference group. The results of testing this model suggest that strategic groups act as reference points for firm strategies and that predictions of future firm strategies and industry/group structures may also be successfully derived.
PLANNING IN SPECIFIC MANAGEMENT AREAS--CORPORATE AFFAIRS
N.C. SMITH Marketing strategies for the ethics era Sloan Management Review 36 (4), 85-97 (Summer 1995) Marketing strategies are increasingly subject to public scrutiny. Caveat emptor is no longer acceptable as a basis for justifying marketing practices. The 'marketing ethics continuum' explains the shift in society's expectations of marketers and provides benchmarks against which marketers can evaluate their practices. The 'consumer sovereignty test' (CST) Current Awareness
will help to resolve some of the ethical problems marketing managers are currently experiencing. When conscience signals that something is not right about a marketing decision, managers have some basis for exploring the ethical dimensions. M. YOSHIMORI
Whose company is it? The concept of the corporation in Japan and the West Long Range Planning 28 (4), 33-44 (August 1995) In terms of corporate governance, countries can be divided into three groups. The monistic outlook is shareholder-oriented and is prevalent in the USA and the UK. The dualistic concept puts a premium on shareholder interest but also takes employees' interest into account and is typical of Germany and, to a lesser degree, of France. The pluralistic approach assumes that the company belongs to all the stakeholders with employees' interests taking precedence and is specific to Japan. The relations among stakeholders are illustrated by the examples ofToyo Kogyo and Chrysler. Japan's concept of the corporation has its negative aspects, the most serious one of which is the inefficient monitoring of top management. There is a positive correlation between efficiency and the pluralistic concept. Convergence between the concepts is emerging with Japan and Germany moving towards the Anglo-American model in some respects and the converse in others. J.M. STEWART Empowering multinational subsidiaries Long Range Planning 28 (4), 63-73 (August 1995) By empowering the subsidiary the Multinational Corporation (MNC) can improve its global competitiveness, benefiting all stakeholders. The best way to motivate people is to give them space to achieve. Goals need to link activity in a systems way to a purpose that has h u m a n dimensions of serving. The third requirement is to create a sense of ownership. The basic MNC decision-making units must be the businesses which earn the right to manage businesses in which they have a particular strength. The current restructuring of MNCs often results in disempowerment of the subsidiary rather than the reverse. The best thing an MNC can do for the host country is to create a world class business which will benefit all stakeholders. Trust and a feeling of equality should exist between head office and subsidiaries. Those MNCs which can do this will gain enduring competitive advantage. K. THOMAS
Gotta Grow
Journal of Business Strategy 16 (9), 27-36 (July/Aug 1995) Four companies are analysed to show how even in industry sectors which have been described as
ing the network mode of governance. The network mode is viewed at three levels--intrafirm, interfirm and institutional--to illuminate the inherent tension between cooperation and competition at each level, and to explore the implications of this tension for industrial dynamics.
A.W.H. GRANTand L.A. SCHLESINGER
Realize your customers' full profit potential Harvard Business Review 73 (5), 59-72 (Sept/Oct 1995) Achieving the full profit potential of each customer relationship should be the fundamental aim of every business. Even using conservative estimates, the gap between most companies' current and full-potential performance is enormous. The usual reason is that the value exchanges are less than optimal. Yet once a company has decided on its ideal behaviour profiles it can calculate the full potential of its target customers and prospect universe. To close the gap means rethinking positioning strategy, investment management, operational processes, and organizational alignment. The opportunity is there and those who act early will gain real benefit. R.I. DOLAN
How do you know when the price is right? Harvard Business Review 73 (5), 174-183 (Sept/Oct 1995) Pricing is managers' biggest marketing headache. An eight step process is suggested to help make better decisions. The value placed by the customer on the product needs to be assessed. Consideration should be given to customize price to reflect the way value is seen. Customer sensitivity to price should be analysed. Any pricing structure should be optimal and competitors' reaction taken into account. Other steps include monitoring prices at the point of transaction, assessing customers' emotional response and analysing whether the returns are worth the cost. The pricing process should both complement the overall marketing strategy and be coordinated and holistic.
PLANNING IN SPECIFIC MANAGEMENT AREAS--MAN UFACTURING
PLANNING IN SPECIFIC MANAGEMENT AREAS--HUMAN RESOURCES
R. COOPE~and M.L. MARKUS
Human Reengineering Sloan Management Review 36 (4), 39-50 (Summer 1995) Japanese soy sauce producers, Toshio Okuno's five techniques for managing major changes are described. By focusing first on changing people's attitudes toward change and encouraging them to be creative, significant improvements in processes and results were achieved. Employees began to suggest ideas for change. The techniques work as an integrated system that allows the company to innovate continuously and present many lessons for making change fun. The organization has the human capacity to help it keep on learning. CHONCJU CHOI
Samsung: reeingeering Korean style Long Range Planning 28 (4), 74-80 (August 1995) Samsung's approach to re-engineering was unique. What proved important were ideas of managerial camaraderie and the commitment to change by the Chairman. The chairman launched his 'new manageInent' programme in 1993. Working time was changed. Staff were expected to undertake selfimprovement projects. Employees were encouraged to spend more time with their families. Product line suspension was used to heighten a sense of crisis and quality management belatedly became the order of the clay. The Samsung experience demonstrates the need to share information, to work in teams, and to be loyal to the corporation. It illustrates the cooperative rather than the competitive nature of business process re-engineering. It emphasizes the strength of determination and leadership on the part of the chairman.
R. GARUDand A. KUMARASWAMY
B. HOULDEN
Technological and organizational designs for realizing economies of substitution Strategic Management Journal 16, 93-109
How corporate planning adapts and survives Long Range Planning 28 (4), 99-108 (August 1995)
(Summer 1995) The systemic nature of technologies makes it difficult, if not impossible, for any one firm to manufacture all components of a technological system. These challenges can be met by designing technological systems that have the potential to yield economies of substitution. These economies can be realized by adopt-
Strategic planning is a mixture of art and science and, contrary to forecasts, the use of strategic planning is expanding relatively quickly. This is shown when the results of a survey made in 1992/93 are compared with a similar one carried out in 1985. Corporate planning must be close to the strategy decision makers. The trend since 1985 has been for corporate planners to report to the finance director. Planning is now more Long Range Planning Vol. 28
December1995
line driven, simpler, with greater focus on the competitive environment and addressing strategic issues. Implementation receives more emphasis. For a corporate planning unit to be successful, it must be seen as a business unit and must involve training. The CEO must assume the responsibility both for the quality of decisions and the effectiveness of implementation. D.A. GARVIN Leveraging processes for strategic advantage Harvard Business Review 73 (5), 77-90 (Sept/Oct 1995) Xerox's Allaire, USA's Herres, SmithKline Beecham's Leschly and Pepsi's Weatherup took part in a round table discussion, the theme of which was business process reengineering. Points that were covered included the reasons w h y each of the firms rethought processes, the response of staff to the changes, the impact on senior management, changes in the way the CEO worked. The participants agreed that the task of getting people to change is difficult and painful and that there is a need to change the culture of the organization. A. FIEGENBAUMand H. THOMAS Strategic groups as reference groups: theory, modeling and empirical examinations of industry and competitive strategy Strategic Management Journal 16 (6), 461-476 (September 1995) A strategic group acts as a reference point for group members in formulating competitive strategy. A partial adjustment model of strategic mobility is developed incorporating the strategic group as a reference group. The results of testing this model suggest that strategic groups act as reference points for firm strategies and that predictions of future firm strategies and industry/group structures may also be successfully derived.
PLANNING IN SPECIFIC MANAGEMENT AREAS--CORPORATE AFFAIRS
N.C. SMITH Marketing strategies for the ethics era Sloan Management Review 36 (4), 85-97 (Summer 1995) Marketing strategies are increasingly subject to public scrutiny. Caveat emptor is no longer acceptable as a basis for justifying marketing practices. The 'marketing ethics continuum' explains the shift in society's expectations of marketers and provides benchmarks against which marketers can evaluate their practices. The 'consumer sovereignty test' (CST) Current Awareness
will help to resolve some of the ethical problems marketing managers are currently experiencing. When conscience signals that something is not right about a marketing decision, managers have some basis for exploring the ethical dimensions. M. YOSHIMORI
Whose company is it? The concept of the corporation in Japan and the West Long Range Planning 28 (4), 33-44 (August 1995) In terms of corporate governance, countries can be divided into three groups. The monistic outlook is shareholder-oriented and is prevalent in the USA and the UK. The dualistic concept puts a premium on shareholder interest but also takes employees' interest into account and is typical of Germany and, to a lesser degree, of France. The pluralistic approach assumes that the company belongs to all the stakeholders with employees' interests taking precedence and is specific to Japan. The relations among stakeholders are illustrated by the examples ofToyo Kogyo and Chrysler. Japan's concept of the corporation has its negative aspects, the most serious one of which is the inefficient monitoring of top management. There is a positive correlation between efficiency and the pluralistic concept. Convergence between the concepts is emerging with Japan and Germany moving towards the Anglo-American model in some respects and the converse in others. J.M. STEWART Empowering multinational subsidiaries Long Range Planning 28 (4), 63-73 (August 1995) By empowering the subsidiary the Multinational Corporation (MNC) can improve its global competitiveness, benefiting all stakeholders. The best way to motivate people is to give them space to achieve. Goals need to link activity in a systems way to a purpose that has h u m a n dimensions of serving. The third requirement is to create a sense of ownership. The basic MNC decision-making units must be the businesses which earn the right to manage businesses in which they have a particular strength. The current restructuring of MNCs often results in disempowerment of the subsidiary rather than the reverse. The best thing an MNC can do for the host country is to create a world class business which will benefit all stakeholders. Trust and a feeling of equality should exist between head office and subsidiaries. Those MNCs which can do this will gain enduring competitive advantage. K. THOMAS
Gotta Grow
Journal of Business Strategy 16 (9), 27-36 (July/Aug 1995) Four companies are analysed to show how even in industry sectors which have been described as