C.K. Prahalad’s death last month has inspired various literature on the strategic thinking about the man who coined the notions of”strategic intent” and”core competency” In reality, the strategic management guru’s thinking has increasingly been called upon since the economic crisis. Strategic direction – the practice of obtaining from the current state to the future condition which guarantees Insights into Strategic Management competitive edge – has never been more relevant. “Business as usual” can no more be the circumstance in which to make conclusions.
In a hypercompetitive global market, more businesses are feeling the effects of Prahalad’s”strategic decay” – the notion that strategy starts to decay the moment it is created. Strategic management can help supervisors feel fuller and act quicker. Organizations that used strategic planning during the financial crisis were more successful in their pursuit of growth opportunities and much more confident about short-term expansion prospects, in accordance with a 2009 study of 190 US companies sponsored by the Association of Strategic Planning. As a short review of the current research reveals, strategic direction is rising to the challenge at a time of economic uncertainty.
By driving strategic direction further in the business, companies are discovering new growth opportunities. In the University of St. Gallen, Switzerland, strategic management specialists Drs. Christoph Lechner and Markus Kreutzer identified four ways of coordination across multi-unit firms that cause corporate growth, based on the analysis of 51 businesses in Asia, Europe and North America. In the context-setting mode, as an instance, global food manufacturer Hügli equipped middle managers across Europe with strategic management training and tools – financial and business planning, risk analysis, job flow graphs – to identify and execute growth initiatives. Emphasis is put on pragmatic risk analysis: pulling the’tear cord’ when growth initiatives are going off track rather than throwing good money after bad.