Ex Mercks puts patients first pull out the medicine Vinoxx which was considered

Ex mercks puts patients first pull out the medicine

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Ex : Merck’s puts patients first (pull out the medicine Vinoxx, which was considered as dangerous for health by the control department of the firm, from the market even if it enabled the firm gaining 2,5 billions a year with this product) // Pfizer faced the same situation but decided to continue the production (shareholders first) Ability to focus on these priorities : - What critical performance variables are you tracking ? Only those that could cause strategy failure , because too many measures in your scorecard drive out innovation. And if you add metrics to your scorecards, you incur an opportunity cost in that people have less time to focus on what really matters. Ex : Amazon focuses on making purchasing as easy as posible. Nordstrom pays attention at consumer loyalty (so managers keep an eye on sales per hour and revenue per square foot). - What strategics boundaries (limits) have you set ? Every strategy carries the risk that an individual’s actions will push the business off course. Two solutions : tell people what to do or what not to do. Setting clear boundaries lets organizations avoid the waste and risk that inevitably accompany undiscipline growth. Are you using techniques which improve creative tension and commitment ? - How are you generating creative tension ? Assigning stretch (ambitieux) goals = challenge goals, ranking according to performance (at the level of employees, teams or business units), setting spans of accountability that are greater than spans of control, allocating costs, creating cross unit teams (one way to force employees to think out of the box is to assign them to a second box : new perspectives emerge when people are forced out of their routine). - How commited are your employees to helping each other ? Leaders must build an organization with these attributes : Pride of the employees for the organization, Group identification, trust (your colleagues) : enables collaboration, fairness (fix inequities of pay for example). Ability to adapt your strategy over time - What Strategic uncertainties keep you awake at night? Your entire organization must constantly scan the competitive environment for changes. Article 3 Partie “Craft a strategy that defines your environment”
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When executives develop corporate strategy, they nearly always use a “ structuralist approach ”. “ Structuralist approach ” : - assess the strengths and weakness of the players they are up against - set out to carve a distinctive strategic position, build a competitive advantage - choose to differentiate for a premium price or low costs - align the value chain (manufacturing, marketing, HR) - set financial targets and budget allocations -> strategic options are bounded by the environment However, in plenty of cases, firms’ strategies shaped industry structure . Ex : Ford’s Model T , Nintendo’s Wii .
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