C aggressive and ambitious expansion defined as

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Unformatted text preview: ce with risk considerations Operate as an underwriting agency St.C: Aggressive and ambitious expansion defined as objective function Group 2: Cascade (Strategic Initiative # 1, 5, 7, 13) Level Definition Impetus Commitment Strategic Context: Big potential market full of opportunities faced Example of Cascade: Geographic Expansion: Strategic Initiative # 1 Middle Commitment Sets strategic line of growth in planning exercise Legitimization of strategic initiatives based on successul pilot project carried out in a new geographical area Financial Resources allocated to legitimized strategic initiatives Centered in core products and services to favour geographic expansion. 11 goals and development of plans Top Impetus Strategic Reflection. Generation of strategic Top Level Definition lines into concrete corporate level objectives Middle initiatives. Agreement on strategic initiatives translate strategic Monitor and control evolution of strategic initiatives Feasibility of projects Bottom Bottom according to operating capabilities Adaptation of operational processes Aligned with strategic objetive Structural Context: Business Domain defined for expansion is household customers Strategic Context: Abrupt decline in sales on traditional domain Example of Spring: Travel Services in new Domains: Strategic Initiative # 9 Group 3: Spring (Strategic Initiative # 9, 10, 11) Level Top Middle Bottom Definition Impetus Commitment Level Top Definition Sets strategic line of growth Impetus Commitment Temporary legitimation since it does not No major new resources are contradict existing lines. Left for future needed. Only the existing ones strategic revision Plans designed to grow Middle in existing customers Aggressive plan to attack middle and small size companies with air tickets and hotel services to compensate for decrease in sales Bottom Big decrease in sales Selling goals have been achieved, yet strategic fit is under consideration. Finally new domain is accepted Aggressive selling to company customers to use slack and achieve selling goals due to September 11 The first group, ‘flow’, presents strategic initiatives originated and formulated at middle level, in this case at the level of unit head. ‘Flow’ initiatives were conceived and evaluated at middle level, without top management intervention. Once evaluated for feasibility, they were presented to top management for approval. Yet this presentation was not strategy blind; typically, initiatives had been developed within the spirit of the objective function. The second group, ‘cascade’, portrays initiatives originated at top management level and developed by middle management and bottom level. ‘Cascade’ initiatives would 16 appear to match the typical top-down approach. Yet the mechanism used to set out the initiatives was not command and control; rather, the initiatives were established mostly as extensions of the agreed upon objective function. Hence, they were seen as logical extensions of the objective...
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