And major changes in the laws governing interstate

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Unformatted text preview: on the other, drove IBM’s dramatic makeover into an integrated service provider. And major changes in the laws governing interstate banking led to widespread acquisitions of local financial institutions by major banks whose operations had previously been limited to their home state or region, prompting major strategy changes across the industry. 2. Resources: The second source of input is the organization’s resources, including the full range of accessible assets—employees, technology, 6 capital, and information. Resources may also include less tangible assets, such as the organization’s reputation among key outside groups— customers, investors, regulators, competitors, etc.—or its internal organizational climate. 3. History: There is considerable evidence that the way an organization functions today is greatly influenced by landmark events that occurred in its past. In order to reasonably predict an organization’s capacity to act now or in the future, you must understand the crucial developments that shaped it over time—the strategic decisions, behavior of key leaders, responses to crises, and the evolution of values and beliefs. The history of Xerox is a case in point. In the 1950s, Xerox approached industry giants—IBM, GE, RCA—looking for a partner to help it produce, sell, and distribute its revolutionary new copier. No one was interested, so Xerox was forced to work on its own. Ironically, the result was one of the most successful product launches in history. The lesson from the company’s seminal victory, which influenced its business strategy for decades, was that partnering was for other companies, not for Xerox. The historical lesson at Corning Inc. was just the opposite. Since its earliest days, when Corning Glass Works teamed up with Thomas Edison to produce the first commercially viable light bulbs, the company has fueled its growth through a variety of creative collaborations with other companies around the globe. Those mergers, partnerships, and joint ventures provided Corning with new technologies in evolving growth businesses as well as access to new markets for its existing products. Clearly, two very different histories led directly to two very different strategic philosophies.The two column layout, as illustrated here, is just one of many ways in which the basic grid may be used. Layouts may combine the underlying six column structure as is appropriate to the content being presented. Oliver Wyman – Delta Organization & Leadership Figure 3: The Organization as a Transformation Process Transformation Process Input Organizational Performance Environment Resources Output Strategy The Organization Individual Performance History Strategy Every company faces two levels of strategic issues. The first is corporate strategy, involving portfolio decisions about which businesses the company ought to be in. For government and not-for-profit organizations, “corporate strategy” often reflects a combination of the legislative mandate, which defines the public-policy ob...
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