Strategy Dynamics Briefing 25: Resource quality: understanding attributes

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It is not easy to understand and manage changes in attributes and the impact of those changes. Strategy must recognize and cope with change over time, so needs a method for quantifying both scale and speed of progress. Now we must not only work out how key resources are changing, but also the quality of those resources.
How is this done?

The table below looks at how the customer base and sales for the manufacturing firm from briefing 24 would evolve ...

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Strategy Dynamics Breifing 17: The problems with correlation

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A devastating implication arises from this interdependency between resources from the previous briefing. Here is a simple story…

A company’s profits come from its revenues minus its costs, and its revenues reflect the number of customers. Amongst its costs, marketing spend mostly acts to win customers, rather than increase their purchase rate

  • The company raises marketing spend in order to grow sales and profits
  • But first, its profits fall because of the higher marketing cost
  • However, the marketing spend does win a few more ...
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Strategy Dynamics Briefing 9: Links to the ‘resource based view’ of strategy

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Have you ever puzzled over academic concepts?

Thought…
What does this mean? Should I be using this?

This briefing discusses some academic stuff, which is important for teachers to understand. It’s useful for professionals too, because you may come across these concepts, puzzle about what they mean, and wonder if you should be using them. I have put a few key references at the end.

In very simple terms, the academic study of strategy and performance has shifted its attention in recent decades. ...

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How to Expand While Cutting Costs

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An interesting article in on this topic, which is probably front of mind for quite a few organisations right now, in strategy+business. The article comes up with ‘the frugal growth triangle’, on the working relationships between business units, corporate and shared functions. Unfortunately, while there are some good suggestions in it, there are also plenty of platitudes .. get business units accountable, connect innovation to consumer insight, have business units ‘pull’ services from the infrastructure, choose core capabilities to invest in, ...

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