By Fredrik Nilsson, Birger Rapp
This booklet is set aggressive virtue and the way it really is created on the corporation point. it really is according to the basis that the alignment of techniques and regulate platforms impacts the firm`s probabilities of effectively positioning itself in its selected area of pageant. The company is in a greater place to be aware of actions that create price for the buyer if its concepts and keep an eye on structures are collectively constant and tailored to anticipated exterior calls for. The authors believe that the co-ordination and integration of techniques and regulate platforms will offer an important, and long-overdue, enlargement of information within the area.
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Extra info for Understanding competitive advantage: the importance of strategic congruence and integrated control
Sample text
12. See Chapter 1, which describes how this analysis can be conducted with the aid of Porter's (1980) five-force framework. 13. The following section contains an overall discussion of different corporate, business, and functional strategies. The reasoning is developed further in Chapter 3, particularly in regard to the distinguishing features of each strategy. 14. The results from the study by Goold and Campbell (1987a) were further analyzed and refined in Goold et al. (1994). 15. Nilsson (2000) studied only corporate groups with a strategy of either financial control or strategic planning.
After this discovery, Chandler's original theory was modified to include the proviso that a strong correlation between strategy and structure requires the presence of competition. Finally, Rumelt (1974) conducted a study of selected Fortune 500 companies. 47f). , 1988, p. 99). At the same time, considerable emphasis is also placed on the structure of the firm, particularly as manifested in the so-called value chain (internal fit). Thus, this perspective illustrates the interplay between external and internal fit in creating and maintaining competitive advantage.
One reason why Porter (1985) introduced the concept of the value chain was to facilitate analysis of the firm's primary and secondary activities. In the field of management control, the concept of activitybased costing (ABC) was subsequently launched (Bromwich and Bhimani, 1994). 3 Strategic Congruence One central point of departure for this book is that strategic congruence is a necessary precondition for being competitive. In this chapter the concept of strategic congruence is defined and related to other important concepts in the research area of strategy.
