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Shvoong Home>Books>Business Strategy - Means and ends versus means and ends Review

Business Strategy - Means and ends versus means and ends

Book Review   by:Nepomuc     Original Authors: Ferreira Marcus Aurelius. EVISTA Economic Environment; ; ; ;
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Means and ends versus means and ends

The construction of a strategic mindset depends more than you might think of the domain knowledge of what might be called the scale of priority strategic decision making. Even though it seems theoretical at first glance, it is crucial for any leader to master the logical sequence of decision opting for spatial goals, strategies, resources or the resources-strategies-antagonistic goals. Or, a tertius seeking to merge the two alternatives. When Promon Engineering decided to diversify into the field of telecommunications - today a highly successful case - certainly had to choose the first procedure, establishing a more unorthodox, plotting strategies and seeking new resources - ie, did not use so- only their own existing resources - even in the field of knowledge and skills to support their new ways. On the other hand, another visionary company, Gerdau also a case of enormous success, when he entered the Cosigua was putting his decision in the sequence resources-strategies-goals, as it had the resources for such an undertaking. This discussion, which came to the academic and caught fire in the battle between different schools, is more important than you might think at first glance. Remain so Manichean, in deciding a company resources may lead to an overly conservative posture. The Belprato, the market leader in the 80s in Rio de Janeiro in the food industry - a company for whom I have enormous affection until today - may have explained their failure largely by exclusively industrial mindset of their culture. Rooted to existing resources, the change was not accepted by their leaders at levels sufficient for her to continue living. On the other hand, open your horizons in an exaggerated way, thinking only in the objectives, the strategic plan can turn in a syndrome of wishful thinking. Much of the accumulated debt of Varig - undoubted case of operational excellence in commercial aviation - is the result of its diversification activities, which came to add more than 20 business units outside the axis of its core competence, almost all in deficit. The mentality of setting goals and then we turn around may be fatal. What to do? In my view, there is no doubt that once again the virtue is in the middle and the real equation that leads to success organizations must go through an iterative process, deeply intelligent feedback and to walk in both directions. It is at this time, make a very important caveat. The degree of heterodoxy - that is, when you walk into the sequence objectives-strategies-resources - should be as strong as the need for the company to survive with new activities. Back in the mid 80''s and early 90''s, at least two economic sectors - the computer industry and public works contractor - due to the huge degree of threat they had before them, were forced to diversify into fields where resourceswere not the command of forces dominated. Instead, their survival would depend on a much bolder thinking, where the vision, intuition, open-mindedness and even the risk would be the real forces driving the process. Past time, historical record already shows that the companies within those segments that are good today, should certainly expanded the horizon of his vision the fact of being alive. Methodologically, we call this concept of QEV''S - Strategic Issues Vital - a mean and range of actions that must be adopted anyway, because they are vital. That is, if not implemented, the company desmensuradamente increases your risk of life. This is another step slippery business management. Both conservatism and megalomania are causes of business failure.Therefore,-administration is a science, but is also an art. Source Vianna, Marcus Ferreira.Means and ends versus means and ends. Economic Outlook Magazine, v. 56, n. 4, April 2002. Available at:. Accessed on: 01 February 2005
Published: October 20, 2011   
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