Summary Strategic Scenarios and Business
Models
Theme 1 - Organization Adaptability, Strategic Renewal.........................................................................................6
1. Strategic Renewal of Organizations – (Agarwal, 2009)....................................................................................6
1. Advise - Agarwal and Helfat, (2009) Strategic Renewal of Organizations........................................................9
2. Reeves (2011) - Adaptability: The new competitive advantage -.....................................................................9
2. Advise – Reeves (2011) Adaptability: The new competitive advantage.........................................................10
3. Miles et al (1978) - Organizational Strategy, Structure, and Process.............................................................11
3. Advise - Miles et al (1978) Organizational Strategy, Structure, and Process.................................................15
Theme 2 – Wicked Problems, Digitalization & Platformization..............................................................................16
4. Wicked Problems: Implications for Public Policy and Management Head and Alford, (2015)......................16
Collaboration and Coordination.........................................................................................................................18
4. Advise – Head and Alford, (2015) Wicked Problems: Implications for Public Policy and Management........20
5. Infrastructure studies meet platform studies in the age of Google and Facebook – Platin et al. (2018)......20
5. Advise – Plantin et al. (2018) Infrastructure studies meet platform studies in the age of Google and
Facebook.............................................................................................................................................................23
6. Governing digital societies: Private Platforms, Public values – Van Dijk, (2020)...........................................25
6. Advise – Van Dijck, (2020) Governing digital societies: Private Platforms, Public values..............................27
7. Big other: surveillance capitalism and the prospects of an information civilization – Zuboff, (2015)...........27
7. Advise – Zuboff, (2015) Big other: surveillance capitalism and the prospects of an information civilization
............................................................................................................................................................................29
Theme 3 – Strategy, Data & Stakeholder Engagement...........................................................................................31
8. Strategic Management of Stakeholders: Theory and Practice – Ackermann and Eden, (2011)....................31
8. Advice – Ackermann and Eden, 2011 - Strategic Management of Stakeholders: Theory and Practice.........39
9.Opening Strategy: Evolution of a Precarious Profession – Whittington, et al., (2011)...................................39
9. Advise - Whittington, et al., (2011) Opening Strategy: Evolution of a Precarious Profession.......................42
10. New games, new rules: big data and the changing context of strategy – Constantiou and Kallinikos,
(2014)..................................................................................................................................................................43
10. Advise - Constantiou and Kallinikos, (2014) New games, new rules: big data and the changing context of
strategy...............................................................................................................................................................47
Theme 4 – Business Models & Ecosystems.............................................................................................................49
11. Towards a theory of eco-systems – Jacobides et al., (2018)........................................................................49
11. Advice - Jacobides et al., (2018) Towards a theory of eco-systems.............................................................53
12. BUSINESS MODELS AND BUSINESS MODEL INNOVATION: BETWEEN WICKED AND PARADIGMATIC
PROBLEMS - Foss and Saebi (2017)....................................................................................................................53
12. – Advice - Foss and Saebi (2017)- BUSINESS MODELS AND BUSINESS MODEL INNOVATION: BETWEEN
WICKED AND PARADIGMATIC PROBLEMS – Foss and Saebi (2017)...................................................................57
13. The Business Model: Recent Developments and Future Research - Zott et al., (2011)...............................58
Emergence of the Business Model Concept and Definitions..............................................................................58
, 13. Business Models and Strategy: Value Creation and Value Capture Through Activities...............................59
13. Advise – Zott et al., (2011) - The Business Model: Recent Developments and Future Research.................60
Theme 5 – Workshop: Methodologies for developing business models................................................................62
14. From Strategy to Business Models and onto Tactics – Casadesus-Masanell and Ricart, (2010).................62
A generic two-stage competitive process framework........................................................................................62
14. Advise - Casadesus-Masanell and Ricart, (2010) - From Strategy to Business Models and onto Tactics....68
15. Mapping distinctive competencies: a systemic approach - Eden and Ackermann, (2002)..........................69
A systemic approach...........................................................................................................................................69
15. Advise – Eden and Ackermann (2000), Mapping Distinctive Competencies: A Systemic Approach............72
16. Supporting start-up business model design through system dynamics modelling – Cosenz (2017)...........73
System Dynamics Modelling...............................................................................................................................73
16. Advise – Cosenz, (2017) Supporting start-up business model design through system dynamics modelling
............................................................................................................................................................................78
17. Chapter 7. Systems based methods: group model building – Rouwette and Franco, (2015)......................79
Systems based methods: group model building.................................................................................................79
17. Advise - Rouwette and Franco, (2015) - Chapter 7. Systems based methods: group model building.........82
17. Chapter 8. Narrative based methods: multiple scenario development - Rouwette and Franco, (2015).....83
Narrative based methods: multiple scenario development...............................................................................83
17. Advise - Rouwette and Franco, (2015) - Chapter 8. Narrative based methods: multiple scenario
development.......................................................................................................................................................85
Theme 6 - Decision Analysis....................................................................................................................................86
18. Policy Analysis: A systematic approach to supporting policy-making in the public sector - Walker, (2000)
............................................................................................................................................................................86
18. Advice - Walker, (2000) - Policy Analysis: A systematic approach to supporting policy-making in the public
sector..................................................................................................................................................................89
19. Marchau V.A.W.J., Walker, W.E., Annema, J.A., and van de Waard, J. (2013). The Transport System and
Transport Policy,.................................................................................................................................................91
20. Walker W.E., Marchau, V.A.W.J.& Kwakkel, J.H. (2013). Chapter 9 Uncertainty in the Framework of Public
Policy Analysis. In W.A.H. Thissen & W.E. Walker (Eds.), Public Policy Analysis. International Series in
Operations Research & Management Science 179, Springer, New York, 215261.............................................96
21 Policymaking in the face of uncertainty about the future.............................................................................98
Conclusions.......................................................................................................................................................102
Theme 1 - Organization Adaptability, Strategic Renewal
1. Strategic Renewal of Organizations – (Agarwal, 2009)
Defining Strategic Renewal
Everything is strategic in this definition if it has a direct effect on a company's future prospects. Some factors
that are vital to a company's long-term success can be unimportant to its current success. "Issues relating to the
growth and deterioration of [resources and] skills," writes Winter (2007), are quintessentially strategic. Owing
to their poor quality, low-quality resources restrict potential opportunities. High-quality resources provide more
,opportunities, but they may be constrained in their possible reach of future use, according to Winter. We must
describe the words "strategic" and "renewal" in addition to the terms "strategic" and "renewal." For a business
enterprise, what constitutes "refreshment" or "replacement" deserves further clarification. The noun is
described by Merriam-Webster Dictionary (2008) ""The act or method of renewing" has been added to the
definition of "renewal." " The verb "regrow," which means "to restart development after an interruption or
injury," is especially important. While regrowth is not necessary as part of regeneration, it may be the first step
in laying the groundwork for future development. The word "evolutionary fitness" was coined by Helfat et al.
(2007) to describe the ability of a firm to make a living. The very fact that a strategic feature has been renewed
means that it has been updated or substituted. Strategic renewal refers to the mechanism, material, and effect
of refreshing or replacing an organization's attributes. Its aim is to lay the foundations for future growth and
development. Depending on the situation, the types of organizational characteristics and strategic concerns
that are important can vary. There are several approaches to and avenues for strategic renewal, and our
concept accommodates this diversity.
Discontinuous Transformations and Incremental Strategic Renewal
Industries have faltered due to numerous examples of environmental changes. Change is certain for any
company. Instead, businesses will try to update themselves gradually. According to Tushman and O'Reilly,
transformation ambidextrousness presents problems Firms can address changes in the external environment as
they occur if strategic renewal is implemented early, they claim. It can reduce the necessity for a greater and
more complex transition in the future. The studies look at how existing businesses can grow while staying put.
several companies demonstrate path-dependence with different technology and opportunities corporate
venturing may be an element of this gradual renewal Changes in the environment don't always cause gradual
renewal. As a series of small steps are taken, so are their eventual effects. Firms are forced to undergo
continuous changes in their strategy and structure because of renewal and discontinuous transformation. Most
companies face strategic renewal at some point. It describes both short-term and long-term initiatives. This
capacity for strategic renewal indicates that it will be profound.
Impact of Strategic Renewal
Established businesses will be aided by efforts to renew their strategy. A majority of the new patents are
granted to developed countries in the world. Also plays a large role in economic development. versusability An
incumbent firm's path to renewed strategic positioning includes international diversification. More than a than
100 US-based manufacturing facilities were examined, and the results showed that new plants were more
efficient Startups make up the majority of the entrants in new industries, however they are also both more
likely to be long-lived and efficient in these regards Entrants with size and prior experience benefit have an
advantage start-up businesses account for a lot of new job creation because of their numerous activities aimed
at growth and change, including spin-offs Entrepreneurial projects are significant contributors to the economy,
but other corporations must also do things like market entry and investment. It is thus concluded that the
existing businesses will thrive in the novel approach. Firms will revolve several times, affecting the economic
trajectory strategic renewal presents both a challenge and an opportunity
Table 2 Strategic Renewal of IBM from Computing Hardware to Computing Business Services
Strengths (attributes that retain value): Weaknesses (attributes that constrain value
Strong customer relationships creation):
R&D personnel Lack of software and consulting expertise
Brand recognition Outdated organizational cognition regarding
Hardware expertise core business
Customer service
Intrafirm coordination
,Opportunities: I. Strategies for adaptation and refreshment, given II. Strategies for replacement, given external
Productivity gains in combining external opportunities opportunities
hardware/ software Combine core and complementary assets (strong Acquire Rational Software and PWC Consulting
Existing firms with well developed customer relationships, brand recognition, to overcome lack of software and consulting
expertise in complementary service, R&D) to take advantage of opportunities expertise
capabilities in combining hardware, software, and services Provide new strategic vision around electronic
Untapped demand Use cross-functional teams to identify new business services to leverage opportunities
demand opportunities in electronic business in combining hardware and software.
services
Threats: III. Strategies for adaptation and refreshment, to IV. Strategies for replacement, to neutralize
Rival companies avoid external threats external threats
Risk of technological obsolescence Leverage brand recognition plus customer Renew technological base to avoid
Commoditization of hardware/ software relationships and service to seek competitive obsolescence
alone advantage over rivals in new business through Top management commitment to changing
early mover status organizational cognition toward electronic
business services, to avoid obsolescence
Move out of commoditized hardware (divest
hard drives, PCs), and focus on integrating
consulting, software, and
services with hardware
Avenues for Strategic Renewal
Technological change is frequently emphasized in discussions of strategic renewal. All empirical studies focus on
R&D focused companies or new technologies. Mature or slowing demand, deregulation, and changing
competition are typical of these types of businesses. Two other studies found varying degrees of sector-of-level
strategic renewal, while one studies sector-on-all strategies This research covers both strategic and gradual
progress as well as well as essential organizational change. six processes show the importance of ongoing or
step-by-by-step renewal Internal change is analyzed by reorganization, R&D, or R Acquisitions and venture
investments are part of external renewal. Individuals especially top management has a large impact on renewal
methods. the studies show how firms that are going through strategic renewal may do so with shifting
customer expectations and those outside of the company Among the various influences on internal social and
political and/institutional thinking are: also see the importance of material and methodology in these
transitions, as well as renewal Material and procedures can be found in the individual studies. Markets like fiber
optics, on the utility.
Table 3 Process and Content Aspects of Strategic Renewal in the Special Issue Articles
Discontinuous transformations Incremental renewal
Process Organizational identity (Tripsas 2009) Internal social context in acquisitions to fill capability gaps
Effect of cognition on entry into new industry (Capron and Mitchell 2009)
(Eggers and Kaplan 2009) Organizational imitation and contagion in adoption of dominant
Dual focus on cost reduction and customer designs (Kim and Pennings 2009)
responsiveness (Gulati and Puranam 2009) Microprocesses for adaptation of new product development
Formal and informal organizational structure capabilities (Salvato 2009)
(Gulati and Puranam 2009) Effect of shared cognition on postacquisition integration
Entrepreneurial dynamic capabilities of top (Puranam et al. 2009)
management (Augier and Teece 2009) Entrepreneurial dynamic capabilities of top management (Augier and
Teece 2009)
Content Product market shift (Tripsas 2009) Acquisitions to obtain new technologies (Puranam et al. 2009)
Discontinuous technological change and entry into new Acquisitions to obtain new capabilities (Capron and Mitchell 2009)
industry (Eggers and Kaplan 2009) Impact on acquisitions of corporate venture capital investing
(Benson and Ziedonis 2009)
Changing dominant designs (Kim and Pennings 2009)
Development of new products (Salvato 2009)
R&D investment (Knott and Posen 2009)
Conclusion
The companies, industries, and whole countries are all suffering from strategic renewal. Despite that, it is
widely seen as a separate concept. This applies to discontinuous transitions in general, but it cannot be
described with any other than the most basic terminology.
,We have given a working definition of the term "strategic renewal" to include all possible strategic renewal
strategies. Both gradual and abrupt shifts in strategy are possible, but factors, including technological
innovation can also trigger a strategic renewal. In this issue, you will see that there are many examples of a
strategic renewal involving multiple dimensions of change such as competiveness, structures, cognition, and
decision-making processes, all of which are intertwined with implementation routines and procedures.
Therefore, using several literatures and lenses is most likely to be beneficial.
1. Advise - Agarwal and Helfat, (2009) Strategic Renewal of
Organizations
Defining Strategic Renewal
Some factors that are vital to a company's long-term success can be unimportant to its current success. What
constitutes "refreshment" or "replacement" deserves further clarification. The verb "regrow," which means "to
restart development after an interruption or injury," is especially important. The word "evolutionary fitness"
was coined by Helfat et al. to describe the ability of a firm to make a living.
Discontinuous Transformations and Incremental Strategic Renewal
Industries have faltered due to numerous examples of environmental changes. Change is certain for any
company. Instead, businesses will try to update themselves gradually, say Tushman and O'Reilly. Studies look at
how existing businesses can grow while staying put. Several companies demonstrate path-dependence with
different technology and opportunities.
Impact of Strategic Renewal
Established businesses will be aided by efforts to renew their strategy. A majority of the new patents are
granted to developed countries in the world. An incumbent firm's path to renewed strategic positioning
includes international diversification. More than a than 100 US-based manufacturing facilities were examined
and new plants were more efficient.
Avenues for Strategic Renewal
All empirical studies focus on R&D focused companies or new technologies. Mature or slowing demand,
deregulation, and changing competition are typical of these types of businesses. Individuals especially top
management has a large impact on renewal methods.
2. Reeves (2011) - Adaptability: The new competitive advantage -
We live in an era of risk and instability.
Since 1980, the volatility of business operating margins has more than doubled. Market leadership is proving to
be an increasingly dubious prize. Sustainable competitive advantage no longer arises from positioning or
resources. Instead, it stems from an ability to read and act on signals of change, authors say. The answers these
companies are coming up with point in a consistent direction, they say. Companies that thrive are quick to read
and act on signals of change. They experiment rapidly, frequently, and economically. They have built up skills in
managing complex multistakeholder systems. A telemetric innovation by one team can instantly raise the bar
for all. They must also rely on their ability to produce a stream of direct revenue, such as by linking their data to
others' operations, writes Amitai Etzioni. The ability to Experiment can often be discovered through
experimentation, he says. It can also help them reinvent their business model and even reshape the
information landscape of its industry. A company must have its antennae tuned to signals of change from the
external environment. It must act quickly to act on them and apply advanced data-mining technologies.
Companies are also leveraging their signalreading capabilities to make operational interventions in real time.
UK-based grocery retailer Tesco continually performs detailed analyses of the purchase patterns of its loyalty-
card members. Procter & Gamble uses a walk-in, 3-D virtual store to run experiments that are quicker and
cheaper than traditional market tests. In 2008 alone, 10 highly skilled employees were able to generate some
10,000 design simulations. Traditionally, the focus has been on a company's
Complex Multicompany Systems
, new products and services. But in an increasingly turbulent environment, business models, strategies,
and routines can also become Ikea, like Tesco, leverages existing assets and capabilities to experiment with
business models. Adaptive companies are tolerant of failure, even to the point of celebrating it. Toyota's
automotive supply pyramids are early examples of adaptive systems. EBay's complex network of sellers and
buyers is another example of an adaptive system. The author: Industry structure is better characterized as
competing webs or ecosystems of codependents, rather than as a handful of competitors with similar goods
and services. Nokia was attacked by an entirely diffrent kind of competitor: Apple's adaptive system of
suppliers, telecom partnerships, and independent application developers. Adaptation is the ability to
bring together the assets and capabilities of so many entities to leapfrog the
experience curve and become new market leaders in record time. Organizations need
to create environments that encourage the knowledge, diversity, autonomy, risk taking, sharing, and
flexibility on which adaptation thrives. Cisco is one company that has made this transformation. What's
needed is some simple, genera- the key indicators tive rules to facilitate interaction, help people make of
success, trade-off s, and set the boundaries within which they can make decisions, writes John Defterios,
Nokia's CEO. Netflix values nine core behaviors still be leading and skills in its employees: judgment,
communica- the smartphone, impact, curiosity, innovation, courage, passion, market. The company's
executives believe that a great workplace is full of "stunning colleagues" who embody these qualities. It has no
vacation policy and does no tracking of time. The focus is on what needs to get done, not how many hours or
days are worked. To the managers involved, they may look like nothing more than an extension of business as
usual, but in fact they create a context in which adaptive capabilities can thrive.
If you are the CEO of a large company that wants to be more adaptive, challenge your managers to:
1. Look at the mavericks. Disruptive mavericks are often entirely new players, sometimes from other
sectors. Ask your managers to shift their focus from traditional competitors' moves to what the new
players are doing. Look at adjacent or analogous industries and markets and ask, "What if this
happened in mine?".
2. Identify and address the uncertainties. Get your managers to put aside the traditional singlebusiness
forecast and instead examine the risks and uncertainties that could significantly aff ect the company.
Your organization needs to distinguish "false knowns" from "underexploited knowns," and "unknown
unknowns".
3. Put an initiative on every risk. Every significant source of uncertainty should be addressed with an
initiative. In managing these initiatives, your company should be as disciplined with metrics, time
frames, and responsibilities as it would be for the product portfolio or the operating plan. The goal of
the initiative may be responding to a neglected business trend, creating options for responding to it
down the line.
4. Examine multiple alternatives. In a stable environment it is sufficient to improve what already exists
or to examine single change proposals. The simple step of requiring that every change proposal be
accompanied by several alternatives not only surfaces a more varied and powerful set of moves, but
also legitimizes and fosters cognitive diversity and organizational flexibility.
5. Increase the clock speed. The speed of adaptation is a function of the cycle time of decision making.
In a fast-moving environment, companies need to accelerate change by making annual planning
processes lighter and more frequent and sometimes by making episodic processes continual.
THE ADAPTIVE APPROACH If your industry is stable and relatively predictable, you may be better off sticking to
the traditional sources of advantage. But if your competitive reality is uncertain and rapidly changing, you need
a dynamic and sustainable way to stay ahead.
2. Advise – Reeves (2011) Adaptability: The new competitive advantage
How to become more adaptable?
The volatility of the operating margins of the company has increased excessively in the last decades. Companies
that thrive are quick to read and act on signs of change. They experiment quickly, frequently and economically.
They have built up skills in managing complex multi-stakeholder systems. Adaptation is the ability to bring
together the assets and capabilities of so many entities to take advantage of the experience curve and become
new market leaders. The author of this: The structure of industry is better characterized as competing webs or
codependent ecosystems than as a handful of competitors with similar goods and services. John Defterios, CEO
of Nokia, shares his advice on how companies can become more adaptive. He says companies need to look at
,the mavericks, the new players, and to identify and address the uncertainties. Every major source of
uncertainty should be addressed through an initiative, he says. The speed of adaptation is a function of the
decision-making cycle time, writes Defterio. The CEO recommends that companies accelerate change by
making annual planning processes lighter and more frequent.
3. Miles et al (1978) - Organizational Strategy, Structure, and Process
Organizational adaptation is a topic that has received only limited and fragmented theoretical treatment.
Any attempt to examine organizational adaptation is difficult, since the process is highly complex and
changeable. The proposed theoretical framework deals with alternative ways in which organizations define
their product-market domains (strategy) and construct mechanisms (structures and processes) to pursue these
strategies. The framework is based on interpretation of existing literature and continuing studies in four
industries (college textbook publishing, electronics, food processing, and health care).
An organization is both an articulated purpose and an established mechanism for achieving it. Most
organizations engage in an ongoing process of evaluating their purposes and modify and refine the mechanism
by which they achieve their purposes. For most organizations, the dynamic processes of adjusting to
environmental change is very complex, but this complexity can be described and can be reduced by searching
for patterns in behavior and predicting the process of organizational adapting.
This article presents a theoretical framework that can be used to analyze an organization as an integrated and
dynamic whole, taking into account interrelationships among strategy, structure and processes. The framework
has two major elements:
1. A general model of the process of adaptation which specifies the major decisions needed by the
organization to maintain an effective alignment with its environment
2. An organizational typology which portrays different patterns of adaptive behavior
First, we start with an example of organizational adaptation. Second, a model of the adaptive process that
arose from this research is discussed. Thirdly, four alternative forms of adaptation exhibited by organizations
are described. Finally, the relation between these organizational forms and currently available theories of
management is discussed.
An example of organizational adaptation
The company used as an example is Porter Pump and Value (PPV), a firm that experienced changes in its
products and markets. The headquarters considered new product and market opportunities, but the general
manager has no experience with sales, extensive planning, field work and negotiations.
The adaptive cycle
The authors developed a general model of the adaptive process which they call the adaptive cycle. It builds
upon the strategic-choice approach. The choices are numerous and complex..
1. The entrepreneurial problem: in a new organization, an entrepreneurial insight must be developed
into a concrete definition of the organizational domain, instead of only vague ideas. The solution is
when management picks a particular domain and commits resources to achieve objectives relative to
that domain. A related problem is that the organization already obtained a set of solutions to its
engineering and administrative problems, which constraints attempts to modify products and
markets.
2. The engineering problem: this problem involves creating a system which operationalizes
management’s solution to the entrepreneurial problem. Management has to select an appropriate
technology for producing and distributing products or services and to form new information,
communication and control linkages.
3. The administrative problem: this problem is primarily that of reducing uncertainty within the
organizational system or rationalizing and stabilizing those activities which successfully solved
problems during the entrepreneurial and engineering phases. It involves formulating and
implementing processes that enable the organization to evolve (innovation). The administrative
system has to direct and monitor the organization’s activities without allowing
, the system to become ingrained. This requires the system to be both a lagging and leading variable.
Lagging, because it must rationalize strategic decisions and leading, because it must facilitate the
organizations future capacity to adapt and allow for innovation.
The strategic typology
How do organizations move through this cycle? What strategies do organizations employ in solving their
entrepreneurial, engineering and administrative problems? There are three strategic types of organizations in
this, with each their own unique strategy and configuration:
1. Defenders: Defenders deliberately create an environment for which a stable form of organizations is
appropriate. They produce only a limited set of products to a narrow segment of the total potential
market. They defend this narrow market by aggressive competition. The defender strategy can be
viable in most industries, but more in stable industries than in turbulent ones. The primary risk of
defenders is ineffectiveness.
2. Prospectors: Businesses with a focus on innovation have a more dynamic environment than others.
They have the capacity to survey a wide range of environmental conditions, trends and events.
Change is one of the major tools used by the prospector to have competitive advantage. Their primary
risk is low profitability and overextension of resources. They cannot be completely efficient because of
the presence of multiple technologies.
3. Analyzers: An analyzer attempts to minimize risk while maximizing opportunity for profit.
Entrepreneurial problem: how to exploit new product and market opportunities while maintaining a
firm core of traditional products and customers. The duality requires management to operate
fundamentally different planning, control and reward systems simultaneously. Their primary risks are
therefore both inefficiency and ineffectiveness if there is no balance.
A fourth type is the reactor which is a form of strategic failure: strategy, technologies, structure and processes
are inconsistent. They lack a set of response mechanisms and respond inappropriately to environmental
change. There are 3 major reasons why organizations can become reactors:
1. Top management hasn’t clearly articulated the organization’s strategy
2. Management does not fully shape the organization’s structure and processes to fit a chosen strategy.
All of the domain, technological and administrative decisions have to be aligned.
3. The tendency for management to maintain the organization’s current strategy-structure
relationship despite overwhelming changes in environmental conditions. Unless a company exists in a
protected environment like a monopoly or highly regulated industry, it has to move toward one of the
consistent and stable strategies to survive.
Every organization fits into one of the four categories and its behavior is generally predictable given its
typological classification.
Management theory linkages to organizational strategy and structure
Organizations are limited in their choice of adaptive behavior to those in which top management believes.
Therefore, theories of management are an important factor in analyzing an organization’s ability to adapt to its
environment.
A theory of management has three basic components:
1. A set of assumptions about human attitudes and behaviors
2. Managerial policies and actions consistent with these assumptions
3. Expectations about employee performance if these policies and actions are implemented
There are three major theories of management:
1. Traditional model (latter part of the 19th century): unilateral control of organizational systems by top
management, standardization, centralization, routine.
2. Human relations model (around 1920): still superior decision-making, but more emphasis on the
social needs of belonging and recognition. More focus on involvement and unions.
3. Human resources model (mid fifties): no longer seeing management as controller, but more as
facilitator, removing constraints that block organizational members to contribute in their work roles
meaningfully. Emphasis on member capacity and motivation to contribute.
,In general, traditional and human relations managerial beliefs are more likely to be found in defender and
reactor organizations. It seems highly unlikely that a Traditional or Human Relations manager can function
effectively as the head of a Prospector organization. It is possible for a human resources manager to lead a
defender organization.
Conclusions
This research is an attempt to:
Portray the major elements of organizational adaptation
Describe patterns of behavior used by organizations to adjust to their environments
Provide a language for discussing organizational behavior at the total system level
The authors have offered a theoretical framework composed of a model of the adaptive process (called the
adaptive cycle) They believe that managers' ability to meet successfully environmental conditions of tomorrow
revolves around their understanding of organizations.
, Entrepreneurial problem Engineering problem Administrative problem
Defender Problem How to seal off a portion of the total How to produce and distribute How to maintain strict control of the organization in
market to create a stable set of products goods and services as efficiently order to ensure efficiency
and customers as possible
Solutions 1. Narrow and stable domain 1. Cost-efficient 1. Financial and production experts most
2. Aggressive maintenance of technology powerful members of the dominant coalition; limited
domain 2. Single core environmental scanning
3. Tendency to ignore technology 2. Tenure of dominant coalition is lengthy;
developments outside the domain 3. Tendency toward promotions from within
4. Cautious and incremental vertical integration 3. Planning is intensive, cost oriented, and
growth primarily through market 4. Continuous completed before action is taken
penetration improvements in technology to 4. Tendency toward functional structure with
5. Some product development but maintain efficiency extensive division of labor and high degree of
closely related to current goods or services formalization.
5. Centralized control and longlooped vertical
information systems
6. Simple coordination mechanisms and
conflict resolved through hierarchical channels
7. Organizational performance measured
against previous years; reward system favors
production and finance
Costs and It is difficult for competitors to dislodge the Technological efficiency is Administrative system is ideally suited to
benefits organization from its small niche in the central to organizational maintain stability and efficiency but it is
industry, but a major shift in the market performance, but heavy not well suited to locating and responding
could threaten survival investment in this area requires to new product or market opportunities
technological problems to
remain familiar and predictable
for lengthy periods of time
Prospecto Problem How to locate and exploit new product and How to avoid long-term How to facilitate and coordinate numerous and diverse
r market opportunities commitment to a single operations
technological process
Solutions 1. Broad and continuously developing1. Flexible, prototypical 1. Marketing and research and development exper
domain technologies most powerful members of the dominant coalition
2. Monitors wide range of 2. Multiple technologies 2. Dominant coalition is large, diverse, and
environmental conditions and events 3. Low degree of routines and transitory; may include an inner circle
3. Creates change in the mechanization; technology 3. Tenure of dominant coalition not always
industry 3. Growth through embedded in people lengthy; key managers may be hired from outside as
product and well as promoted from within
4. Market development. 4. Planning is comprehensive, problem
5. Growth may occur in spurts oriented, and cannot be finalized before action is
taken
5. Tendency toward product structure with
low division of labor and low degree of formalization
6. Decentralized control and short looped
horizontal information systems
7. Complex coordination mechanisms and
conflict resolved through integrators.
8. Organizational performance measured against
important competitors; reward system favors
marketing and research and development
Costs and Product and market innovation Technological flexibility permits a Administrative system is ideally suited to
benefits protect the organization from a rapid response to a changing maintain flexibility and effectiveness but may
changing environment, but the domain, underutilize and mis utilize resources
organization but the organization cannot
runs the risk of low profitability and develop maximum efficiency in its
overextension of its resources production and distribution
system because of multiple
technologies
