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Stategic Drift

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Benedetta Piva
Benedetta Piva
Business
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STRATEGIC DRIFT Berchot - Demarque - Doncieux - Durand - Piva
04/11/2010 2 STRATEGIC DRIFT ,[object Object],A tendency in severalindustry: to base theirdevelopment on cultural and historical influences and on theirpast and foundations. ,[object Object]
understandopportunities and problems
revealstrategic issues or challenges
But  itis not alwayseasy to change at the same time as the theenvironmentIntroduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva
04/11/2010 STRATEGIC DRIFT Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva 3
04/11/2010 4 STRATEGIC DRIFT A long period of continuity Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion ,[object Object]
Enlarges stores and geographical coverage;
but doesn’t deviate from the business modelBerchot - Demarque - Doncieux - Durand - Piva
04/11/2010 5 STRATEGIC DRIFT Whycompaniesmeetincremental changes ? Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva
04/11/2010 6 STRATEGIC DRIFT Strategy doesn’t fit with the environment Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Whilstanorganization’s strategycontinuestochangeincrementally, the environmentalchangeaccelerates Organizationdoesn’t change in linewith the environment Berchot - Demarque - Doncieux - Durand - Piva
04/11/2010 7 STRATEGIC DRIFT Example Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion ,[object Object]
Widerrangesofgoods (non-food)
DistributionlogisticsItsstrategywasnotkeeping pace with competitor’s changes Berchot - Demarque - Doncieux - Durand - Piva
04/11/2010 8 STRATEGIC DRIFT Five reasons for strategic drift Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion ,[object Object]
Building on the familiar: managerstryto minimise the extenttowhitchthey are facedwithuncertaintybylookingforanswersthat are familiar(es: Sainsbury’s and customers’ loyalty)Berchot - Demarque - Doncieux - Durand - Piva

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Stategic Drift

  • 1. STRATEGIC DRIFT Berchot - Demarque - Doncieux - Durand - Piva
  • 2.
  • 5. But  itis not alwayseasy to change at the same time as the theenvironmentIntroduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva
  • 6. 04/11/2010 STRATEGIC DRIFT Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva 3
  • 7.
  • 8. Enlarges stores and geographical coverage;
  • 9. but doesn’t deviate from the business modelBerchot - Demarque - Doncieux - Durand - Piva
  • 10. 04/11/2010 5 STRATEGIC DRIFT Whycompaniesmeetincremental changes ? Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva
  • 11. 04/11/2010 6 STRATEGIC DRIFT Strategy doesn’t fit with the environment Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Whilstanorganization’s strategycontinuestochangeincrementally, the environmentalchangeaccelerates Organizationdoesn’t change in linewith the environment Berchot - Demarque - Doncieux - Durand - Piva
  • 12.
  • 14. DistributionlogisticsItsstrategywasnotkeeping pace with competitor’s changes Berchot - Demarque - Doncieux - Durand - Piva
  • 15.
  • 16. Building on the familiar: managerstryto minimise the extenttowhitchthey are facedwithuncertaintybylookingforanswersthat are familiar(es: Sainsbury’s and customers’ loyalty)Berchot - Demarque - Doncieux - Durand - Piva
  • 17.
  • 18. Relationships become shackles: The success of a company is based on an excellent relationship between customers, suppliers and employees.Berchot - Demarque - Doncieux - Durand - Piva
  • 19.
  • 20. Icarus paradox Berchot - Demarque - Doncieux - Durand - Piva
  • 21.
  • 22. Rivalryinside the company on the strategicturns(historicalreasons)
  • 23. Consequences ?- Deteriotation of confidence inside the organization - Descrease of the value of the company - Difficulty in terms of HR - Loss of customersloyalty Berchot - Demarque - Doncieux - Durand - Piva
  • 24. 04/11/2010 12 STRATEGIC DRIFT Examples Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Succession of CEO during the late 90’s, and somedecisionsled the company to financialunstability as well as marketsharelost. One strategicdecisionhad a terrible consequence : intermediaries are upset, and the brand isboycot. Berchot - Demarque - Doncieux - Durand - Piva
  • 25. 04/11/2010 13 STRATEGIC DRIFT The end of the strategic drift Afterthisperiod of flux, 3 possibilities: Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva
  • 26.
  • 27. 05/11/2010 15 Berchot - Demarque - Doncieux - Durand - Piva STRATEGIC DRIFT Example : the burden of history TransformationalChange or Death
  • 28.
  • 29. Link between innovation and strategic drift. Anticipation of the strategic drift ? Our example: APPLE http://www.youtube.com/watch?v=ciUm-6gBC90 « The revolution has justbegun » Conclusion