Essay about Arte Case

623 Words Jan 31st, 2013 3 Pages
Strategic Styles : Question 3 Arte Case
Two levels of analysis at least : question 1
We can also make strategic groups if possible!
How companies develop strategy: 2 views:
-Strategic planning tools
-Processes: what you change inside a company!! It’s how you organize the work in a cie.

Examples of strategic planning:
-We don’t like their sound. Groups of guitars are on the way out---Decca executives
-There is no reason for any individual to have a computer in their home—Ken Olson CEO of digital (1977)
-With other fifty foreign cars on sale here the Japanese auto industry isn’t likely to carve out a big share of the market for itself – Business Week ‘1968
Sometimes these strategies can make mistake on the evolution of the whole
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In a strategic planning you have long cycles and short cycles. There are people whose job is to be a strategic planner (consolidation) gather the information from all over the world. This job is not easy coz you need to negociate with business units.
The value of strategic planning: Look at the possibilities to decide, reduce uncertainty.
It also helps to get the same criteria of performance.

Article: How to improve strategic planning (Mc Kinsey)
Structure is good for management, but it makes the exchange of informations between the different parts of the organization very difficult.

Example of Divisional Structure : Example of LOREAL
Loreal has 3 division: B to C (pour les particuliers)
Loreal Professionnel Bto B( pour les coiffeurs)
Active cosmetics (for pharmacies)

Matrix structure: you cross competences and industries (consulting firms, Google)
Their obj is to be very innovative.
The franchise system: You sell your processes, your brand to someone, which will be in charge of implementing it. Difficult point: have a good relationship with your franchisee.
If your obj is to internationalize, and you don’t change your structure into a globalizing one, it is going to fail.
Informal control of decisions: Routines= habits, what we use to do in companies, something in the DNA

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