Posts

Linking Strategy to Identity and Culture to Cope with the Changing Environment

Conceptually, a firm’s strategy (what we plan to do) and organizational identity (who we are) are deeply linked. This nexus has drawn more attention recently because of the changing environment of businesses in the last two decades. When a firm’s external environment is unstable, it finds difficulty in coping with it, and therefore, the firm’s […]

Effective Performance Measures of Corporate Control

The primary purpose of strategic management is to maximize the firm’s performance in the long-run. In financial terms, this means maximizing the enterprise value of the firm by maximizing the net present value of the stream of profits (cash flows) over the long-run. Enterprise value is equal to shareholder value plus the value of the […]

Linking Innovation and Competition to Acquisitions

Innovation, competition, and acquisitions are closely interlinked. Innovation is the only way that has the potential to create an enormous amount of shareholder value. Once the firm profitably grows internally through innovation, it opens many opportunities for it to grow further externally through acquisitions and alliances. Most innovative companies today, such as Google, Apple, 3M, […]