Strategy in asset-heavy firms + model

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the Economist says Mr Obama plans big spend to fix US infrastructure. Origins of problems that led to bridges collapsing, water mains bursting, and massive sewage leaks are easy to see – politicians can always put off long-term investment in favour of short-term give-aways. But CEOs face similar temptations. Read on for a detailed explanation of this topic and an exercise to try for yourself …

This has become particularly prevalent since the fashion for privatising utilities – ...

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What is strategy? … and the strategy life-cycle

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Just working on the first chapter of the textbook 2nd edition, and thought it needed a bit more on this question – found the only way to explain to newbies was to go through an organization’s life and track what ‘strategic management’ actually does over that time-horizon. Main messages are:

  • The choice of strategic ‘position’ [what to provide, to whom and how, relative to rivals] is a very rare activity.
  • Substantial strategic initiatives [acquisition, new market entry etc] occur occasionally.
  • By far the ...
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