By Cyril. Levicki
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Extra resources for The Interactive Strategy Workout: Analyze and Develop the Fitness of Your Business
Sample text
Smith forgot it was a conglomeration of small businesses. It tried to turn its small stores into large, high street retail outlets. This turned it into a business which had lost its mission in its customers’ lives. It had, by the end of 2000, spent several years attempting to find a new strategy. Another cause of low profitability in industries is the difficulty of exit. This often refers to heavily capitalized industries, where firms have very large amounts of capital tied up in single process machinery that cannot be used for other purposes.
These responsibilities go beyond what is legally required and far beyond the narrow interests of just the owners, the shareholders and bondholders. Matching the realities in the workplace, Har vard, the London Business School (LBS) and many other business schools began to teach some of the principles of ethical thinking. I taught a class at the LBS back in 1980 using texts from philosophy and political theory to try to bring home to MBA students their moral and social responsibilities as managers and leaders.
In the 1980s I did some work with a senior officer (now dead) of Ultramar Petroleum. The business had substantial contracts to mine LNG (liquefied natural gas) in Indonesia. He always enjoyed reminding me that Indonesia seemed far more stable than normal democratic states, which had elections every few years causing strategic upheaval every time the government changed. I continued to raise my objections to the business working with a corrupt dictator. He continued to tell me that President Suharto had ruled Indonesia for many years and looked likely to do so for many to come.
