Strategic self-renewal: a planning framework for today

Fewer new growth opportunities and increased global competition will render ''star'' businesses a rarity in the late 1980s. Moreover, divesting ''dog'' businesses may become difficult as a result of growing stakeholder activism. Companies therefore may have to...

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Bibliographic Details
Published in:The Academy of Management review 1984-07, Vol.9 (3), p.536-547
Main Author: CHAKRAVARTHY, B. S
Format: Article
Language:English
Subjects:
Biological and medical sciences
Business cycles
Fundamental and applied biological sciences. Psychology
Job enrichment
Occupational psychology
Organization and management. Professional relation
Organizational structure
Psychology. Psychoanalysis. Psychiatry
Psychology. Psychophysiology
Strategic
Strategic business units
Structure
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Summary:Fewer new growth opportunities and increased global competition will render ''star'' businesses a rarity in the late 1980s. Moreover, divesting ''dog'' businesses may become difficult as a result of growing stakeholder activism. Companies therefore may have to lessen their dependence on portfolio planning and increasingly emphasize product extensions and business revitalizations. A planning framework for managing such a self-renewal is presented, the essence of which is an emphasis on nurturing the company's distinctive competencies. The framework is discussed with respect to: 1. strategic choice, 2. strategic business family, 3. dual structure, 4. monitoring, control, and reward, 5. job enrichment for strategic business unit managers, and 6. executive roles. The framework is most meaningful to multi-business companies. The most important contingencies that should affect its selection are: 1. strategic context of the firm, 2. structural context, 3. management style, and 4. corporate culture.
ISSN:0363-7425
1930-3807
DOI:10.2307/258293