Next a chain of causation was deduced from the data

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Unformatted text preview: ther activities were performed by top management, middle management or bottom members. Next, a chain of causation was deduced from the data and a critical path was drawn, showing which activities had driven the initiative from definition to impetus and, finally, to commitment. Table 2. Description of fourteen strategic initiatives studied Initiatives Type Release *1 1 Geographic Expansion Cascade 2 2 RACC Master Card expansion Flow 2 Driving academy product Admin. paperwork service Increase travel service Expansion positioning Car Mechanic Shop Vehicle rental Travel services in new domain Active channel development Central Operations Service (COS) Insurance Marco Polo Life insurance Flow Flow Cascade Flow Cascade Failure Spring Spring Spring Flow Cascade Failure 2 2 2 2 3 2 3 1 1 3 2 3 3 4 5 6 7 8 9 10 11 12 13 14 Brief description Main initiative, it embodies the core of the strategic intent. It sets exponential expansion as the target Expand the use of affiliated credit card to new territories Customize and extend driving academy service Customize and expand admin. paperwork service Expand production of travel service Expand brand image in new territories Expand service to new territories Offer car rental as new integrative product Sell travel services to small companies Develop alternative sales channels Centralize back office Redefine intermediary relationship Offer customized travel products Create a life insurance company *1 = Developed Previously; 2 = Developed along the Strategic Plan; 3 = Developed after the Strategic Plan. Of the fourteen strategic initiatives, eleven were completed, with varying degrees of success; one was at the resource allocation phase at the time of the study; and two were unsuccessful. After drawing the critical path for each initiative, we divided them into three groups, based on common patterns and characteristics. We left out the two unsuccessful initiatives to be analyzed separately. We named the first group ‘flow’, the second group ‘cascade’, and the third ‘spring’, to indicate the nature of their distinctive features. A diagram presenting the representative sequence for each group is shown in Figure 3. 15 Figure 3. Groups of strategic initiatives (draw from common development patterns) Group 1: Flow (Strategic Initiative # 2, 3, 4, 6, 12) Level Definition Impetus Commitment Top Example of Flow: Insurance: Strategic Initiative # 12 Level Top Definition Structural Context: Aggressive and ambitious expansion Strategic Context: Face external risk in major business Impetus Insurance business must Approval granted to the new business approach to adapt the company to change and move towards the business of changing conditions an insurance company Commitment Resources allocated Perceived gradual Middle market change Bottom Maintain relationship with insurance companies with a partnering approach Bottom Middle Underwritting agency defined as a core company project. The whole focus of the business is changed towards a closer relation with the supplying insurance companies Internal procedures redefined to sell insuran...
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This document was uploaded on 02/26/2014 for the course BUSINESS Human reso at Silliman Institute.

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