H. Igor Ansoff, Daniel Kipley, A. O. Lewis, Roxanne Helm-Stevens and Rick Ansoff
Implanting Strategic Management3rd ed. 2019
H. Igor Ansoff
Strategic Management, Alliant International University, San Diego, CA, USA
Daniel Kipley
Strategic Management, Azusa Pacific University, Azusa, CA, USA
A. O. Lewis
Strategic Management, National University, San Diego, CA, USA
Roxanne Helm-Stevens
Strategic Management, Azusa Pacific University, Azusa, CA, USA
Rick Ansoff
Alliant International University, San Diego, CA, USA
ISBN 978-3-319-99598-4e-ISBN 978-3-319-99599-1
Library of Congress Control Number: 2018956581
1st and 2nd edition: © The Ansoff Family 1984, 1990
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2019
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In appreciation and gratitude to H. Igor Ansoff, “The Father of Strategic Management”—a giant in the field. Whose Strategic Success Hypothesis and numerous other contributions in strategic management progressed the study of management to a state where organizations can succeed in turbulent, changing, and surpriseful environment. Your legacy of brilliance and foresight continues on in this updated manuscript so that future generations of scholars and managers can benefit from the ‘Ansoff approach.’

Acknowledgements

The authors of this book give special thanks to the significant contributions made by Prof. Steve Gabriel, senior adjunct instructor at Azusa Pacific University School of Business and Management whose professional insights and active participation helped shape and develop this book through data interpretation, writing, editing, and evaluation of the manuscript.

Contents

List of Figures

Fig. 3.1 Gap analysis in strategic planning27
 
Fig. 3.2 LRP and strategic planning compared29
 
Fig. 3.3 Bird’s eye view of strategic posture management31
 
Fig. 3.4 Strategic issue management33
 
Fig. 4.1 Performance variables44
 
Fig. 4.2 Four stages of evolution47
 
Fig. 5.1 Quasi-strategic planning: LRP +  issue management59
 
Fig. 5.2 Strategic planning and issue management60
 
Fig. 5.3 Tree of strategic management62
 
Fig. 6.1 Example of strategic diagnosis86
 
Fig. 6.2 Managing firm’s adaptation to environment89
 
Fig. 8.1 Mismatch between present and desired future profiles106
 
Fig. 8.2 Effect of strategic mismatch on profit potential107
 
Fig. 8.3 Planning strategic posture124
 
Fig. 9.1 SBA vs. SBU130
 
Fig. 9.2 Demand-technology-product life cycles132
 
Fig. 9.3 Typical evolution of competitive strategy133
 
Fig. 9.4 Logic of SBA segmentation135
 
Fig. 9.5 Methods for evaluating the environment140
 
Fig. 9.6 Management information149
 
Fig. 9.7 The BCG matrix150
 
Fig. 9.8 Estimating SBA attractiveness153
 
Fig. 9.9 Competitive position and strategic investment156
 
Fig. 9.10 Competitive strategy factors159
 
Fig. 9.11 The GE-McKinsey matrix160
 
Fig. 9.12 SBA positioning plot168
 
Fig. 9.13 Choosing the preferred competitive position168
 
Fig. 9.14 Choosing best fit strategy172
 
Fig. 9.15 Choosing the firm’s competitive posture173
 
Fig. 9.16 Choosing the preferred posture174
 
Fig. 10.1 Outcomes of positioning analysis187
 
Fig. 10.2 Dispersion positioning188
 
Fig. 10.3 Competitive analysis of turbulent environments190
 
Fig. 11.1 Portfolio scope200
 
Fig. 11.2 Dimensions of portfolio strategy202
 
Fig. 11.3 Objectives and goals207
 
Fig. 11.4 Coupling of strategies and objectives208
 
Fig. 11.5 Logic of portfolio analysis209
 
Fig. 11.6 Comparison of two SBA portfolios211
 
Fig. 11.7 Life cycle balance211
 
Fig. 11.8 Determining present and maximum functional capability sharing217
 
Fig. 11.9 Choosing functional synergy strategy and goals218
 
Fig. 11.10 Choosing strategy synergy221
 
Fig. 11.11 Estimating future diversity224
 
Fig. 11.12 Cross-impact of discontinuities on the firm229
 
Fig. 11.13 Percentage of profits at different levels of flexibility/vulnerability230
 
Fig. 11.14 Profit and vulnerability/flexibility levels230
 
Fig. 11.15 Logic of diversity strategy formulation232
 
Fig. 11.16 Assuring consistency of portfolio strategy234
 
Fig. 11.17 Selecting optimum strategy237
 
Fig. 11.18 Profiles of goal achievement238
 
Fig. 11.19 Logic of strategy/goals239
 
Fig. 11.20 Logic of strategic posture planning240
 
Fig. 11.21 Tools for portfolio management242
 
Fig. 11.22 Opportunistic vs. planned implementation243
 
Fig. 11.23 Diversification through strategic learning247
 
Fig. 11.24 Organizational flow of planning249
 
Fig. 12.1 Demand-technology-product life cycles257
 
Fig. 12.2 Buyer–seller ‘game matrix’264
 
Fig. 12.3 Technological factors in strategy268
 
Fig. 12.4 Impact of technology on strategy270
 
Fig. 12.5 Degrees of downstream coupling276
 
Fig. 13.1 Wealth-breeding reactor288
 
Fig. 13.2 Stages of priorities in a societally responsive firm298
 
Fig. 13.3 Impact of controls/incentives on business performance299
 
Fig. 13.4 Analysis of legitimacy strategy304
 
Fig. 13.5 Sociopolitical response analysis306
 
Fig. 14.1 Extending demand life cycle317
 
Fig. 14.2 Extending technology life cycle318
 
Fig. 14.3 Role triangle in shared authority/responsibility328
 
Fig. 14.4 Gradual commitment331
 
Fig. 15.1 Management cycle340
 
Fig. 15.2 Implementation cycle341
 
Fig. 15.3 Control cycle341
 
Fig. 15.4 Extrapolative cycle342
 
Fig. 15.5 The cycle343
 
Fig. 16.1 Evolution of structure and systems360
 
Fig. 16.2 Implementation management361
 
Fig. 16.3 Historical control management362
 
Fig. 16.4 Extrapolative management363
 
Fig. 16.5 Entrepreneurial management (project management, strategic planning, strategic posture planning, issue management)366
 
Fig. 17.1 Fully developed functional form398
 
Fig. 17.2 Multinational matrix406
 
Fig. 17.3 Redesigning the structure413
 
Fig. 18.1 Decisive management418
 
Fig. 18.2 Reactive management420
 
Fig. 18.3 Planned management423
 
Fig. 18.4 Sequential response to threats in a reactive firm426
 
Fig. 18.5 Response to threats in a decisive firm427
 
Fig. 18.6 Response to threats in an entrepreneurial planning firm428
 
Fig. 19.1 Strategic issue management system434
 
Fig. 19.2 Strategic issue analysis435
 
Fig. 19.3 Issue assignment440
 
Fig. 19.4 Interdependence between T/O and S/W443
 
Fig. 19.5 Continuing issue detection-evaluation-selection445
 
Fig. 20.1 Alternative response strategies456
 
Fig. 20.2 Feasible ranges of response strategies (shaded areas)458
 
Fig. 20.3 Internal dynamics of response460
 
Fig. 20.4 Preparedness diagnosis461
 
Fig. 20.5 Opportunity/vulnerability profile463
 
Fig. 20.6 Priority assignment in weak signal SIM464
 
Fig. 20.7 Choosing the system465
 
Fig. 21.1 Seven symptoms of resistance474
 
Fig. 22.1 Comparison of Capabilities494
 
Fig. 22.2 Steps in resistance-inducing sequence497
 
Fig. 22.3 Resistance and sequence499
 
Fig. 22.4 Steps in change-motivating sequence500
 
Fig. 23.1 Choice of change method511
 
Fig. 24.1 Japanese vs. Western models of strategic action517
 
Fig. 24.2 ‘Accordion’ method for introduction of change518
 
Fig. 24.3 Control of implementability525
 
Fig. 25.1 Dual system531
 
Fig. 25.2 Control of strategic projects533
 
Fig. 25.3 Dual budget536
 
Fig. 25.4 Dual structure538
 
Fig. 25.5 Master plan for strategy development541
 
Fig. 25.6 Choice of institutionalization542
 

List of Tables

Table 1.1 Comparison of organizational profiles10
 
Table 1.2 Comparison of organizational architectures14
 
Table 3.1 Evolution of management systems26
 
Table 3.2 Weak signals and generated response35
 
Table 3.3 Emergency response to strategic surprise37
 
Table 4.1 Performance variables pre-/post-acquisitions45
 
Table 5.1 Modes of strategic development appropriate under different conditions of predictability/complexity/novelty58
 
Table 6.1 Turbulence scale80
 
Table 6.2 Matching aggressiveness to turbulence82
 
Table 6.3 Matching responsiveness to turbulence84
 
Table 6.4 Matching triplets—aggressiveness and responsiveness with turbulence the optimize a firm’s ROI88
 
Table 7.1 General management capability99
 
Table 7.2 Capability profile103
 
Table 8.1 Worksheet for diagnosing the expected level of future turbulence110
 
Table 8.2 Capability diagnosis111
 
Table 8.3 Managers capability type attributes112
 
Table 8.4 Manager’s climate profiles113
 
Table 8.5 Management competence profiles113
 
Table 8.6 Management capacity114
 
Table 8.7 Managers’ profiles117
 
Table 8.8 Management climate profiles117
 
Table 8.9 Management competency profiles119
 
Table 8.10 Management capacity120
 
Table 8.11 The capability choice123
 
Table 9.1 SBA for Kinetic conversion transportation137
 
Table 9.2 Mentality and turbulence145
 
Table 9.3 Appraisal of changes in SBA prospects growth154
 
Table 9.4 Shift in profitability of an SBA155
 
Table 9.5 Determining future effectiveness of present strategy162
 
Table 9.6 Determining the effectiveness of present capabilities164
 
Table 11.1 SBA performance227
 
Table 12.1 Critical success factors260
 
Table 12.2 Dominant power center for success261
 
Table 12.3 Technological strategic factors267
 
Table 13.1 What went wrong290
 
Table 13.2 Models for the firm’s Raison d’etre 296
 
Table 13.3 Estimating the importance of constraints300
 
Table 13.4 Power field analysis302
 
Table 13.5 Power field balance303
 
Table 14.1 Strategic criteria316
 
Table 14.2 Stages of internationalization319
 
Table 14.3 Diversity of marketing strategy323
 
Table 14.4 Diversity of product-technology strategy324
 
Table 14.5 Diversity of production system325
 
Table 14.6 Examples of shared authority and responsibility330
 
Table 15.1 Managerial archetypes344
 
Table 15.2 The changing work of general managers355
 
Table 16.1 Typology of practical systems369
 
Table 16.2 Choice of systems370
 
Table 16.3 System readiness diagnosis371
 
Table 16.4 Functions of a planning and control staff373
 
Table 17.1 Evolution of corporate structure380
 
Table 17.2 Operating and competitive responsiveness383
 
Table 17.3 Innovation and entrepreneurial responsiveness385
 
Table 17.4 Administrative responsiveness387
 
Table 17.5 Determining preferred responsiveness389
 
Table 17.6 Determining imperative responsiveness391
 
Table 17.7 Patterns of responsiveness392
 
Table 17.8 Organizational building blocks395
 
Table 17.9 Support by basic forms of different behaviors405
 
Table 17.10 Roles of corporate headquarters408
 
Table 17.11 Corporate headquarters’ role profiles for different organizational forms409
 
Table 17.12 Staff contributions to management411
 
Table 18.1 Comparison of behavior in confronting a strategic threat430
 
Table 19.1 Environmental trends436
 
Table 19.2 Internal trends437
 
Table 19.3 Objectives437
 
Table 19.4 Impact/urgency of environmental trends439
 
Table 19.5 The SWOT matrix441
 
Table 19.6 Impact/urgency of threat/opportunities after synergy analysis444
 
Table 19.7 Environmental and choice of systems445
 
Table 20.1 States of knowledge under discontinuity452
 
Table 20.2 Threat/opportunity weak signal analysis455
 
Table 21.1 Effects of power and cultural implications on behavioral resistance475
 
Table 22.1 Matching triplets—aggressiveness and responsiveness with turbulence which optimizes a firm’s ROI495
 
Table 22.2 Combining capability and capacity effects on systemic resistance497
 
Table 23.1 Comparison of change methods510
 
Table 24.1 Planning modules521
 
Table 25.1 Why strategic planning does not work530
 
Table 25.2 Changing resistance into support539