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Competitive and Collaborative
Strategies
By: Harsh Pratap Singh
Prateek Shukla
Naman Gaur
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General Environment Social, Technological, Economic, Ecological, and
political forces
Task Environment
Customer and buyer power, rivalry amongcompetitors, substitute products/services, andpotential new entrants
Enacted Environment Managerial perceptions and representations of
the environment
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Dynamism - the extent to which theenvironment changes unpredictably
Complexity - the number of significantelements the organization must monitor
Information Uncertainty - the extent towhich environmental information isambiguous
Resource Dependence - the degree towhich an organization relies on otherorganizations for resources
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Resource DependenceLow High
Low
High
Information
Uncertainty
Minimal
environmental constraint
and need to be responsiveto environment
Moderate constraint
and responsiveness
to environment
Moderate constraintand responsiveness
to environment
Maximal
environmental constraint
and need to be responsive
to environment
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Strategic Analysis
Strategic Choice
Designing the Strategic Change Plan
Implementing the Strategic ChangePlan
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Strategy
S1
Organization
O1
Organization
O2
Strategy
S2Strategic
ChangePlan
Strategic Analysis Strategic Choice
Implementation
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Strategic Analysis Assess the readiness for change and topmanagements ability to carry out change
Diagnose the Current Strategic Orientation
Strategic Choice
Top management determines the content ofthe strategic change
Designing the Strategic Change Plan
Development of a comprehensive agenda to
achieve the change Implementing the Strategic Change Plan
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Merger - the integration of twopreviously independent organizationsinto a completely new organization
Acquisition - the purchase of oneorganization by another for integrationinto the acquiring organization.
Distinct from strategies for collaboration,such as alliances and networks, becauseat least one of the organizations ceasesto exist.
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Pre-combination Phase The organization must identify a candidate
organization, work with it to gatherinformation about each other, and plan the
implementation and integration activities Legal Combination Phase
The two organizations settle on the terms ofthe deal, gain approval from regulatory
agencies and shareholders, and fileappropriate legal documents
Operational Combination Phase Implementing the operational, technical and
cultural integration activities
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Involve two or more organizations who agree to
work together to achieve their objectives
Align and coordinate organization strategies
goals structures and processes as they become
interdependent
Allow organizations to perform tasks that are too
costly and complicated for single organizations to
perform
Also known as transorganizational systems
including alliances and networks
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When two organizations formally agree topursue a set of goals
There is sharing of resources, intellectualproperty, people, capital, technology,
capabilities or physical assets Common alliances are licensing agreements,
franchises, long-term contracts, and jointventures
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Alliance Strategy Formulation Clarify the business strategy and why an
alliance is needed
Partner Selection Leverage similarities and differences to create
competitive advantage
Alliance Structuring and Start-up Build and leverage trust in the relationship
Alliance Operation and Adjustment
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Involves three or more companies joinedtogether for a common purpose
Each organization in the network hasgoals related to the network as well asthose focused on self-interest
Characterized by two types of change:creating the initial network(transorganizational development) andmanaging change within an establishednetwork
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Create instability in the network Manage the tipping point
The Law of the Few
Stickiness
The Power of Context
Rely on self-organization
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THANK Y