Paths out of profit trouble are long and poorly marked. Because conventional turnaround remedies may get one deeper into the forest, the author offers some radical solutions.
Donald F. Heany and Gerald Weiss
U.S. corporations have been paying attention to strategic planning at the line‐of‐business level. However, something more is needed. According to the authors, strategic planning…
Abstract
U.S. corporations have been paying attention to strategic planning at the line‐of‐business level. However, something more is needed. According to the authors, strategic planning for clusters of businesses is the missing and vital ingredient for success in the future.
Product innovation can run the gamut from new products and product‐line extensions to product improvements and style changes. Business managers need to understand this entire…
Abstract
Product innovation can run the gamut from new products and product‐line extensions to product improvements and style changes. Business managers need to understand this entire spectrum of product innovation in order to be able to compete effectively in the marketplace.
Nearly forty years ago, Professor Edward Mason, then the guru of industrial organization in the Graduate School of Arts and Sciences at Harvard began an experiment. He encouraged…
Abstract
Nearly forty years ago, Professor Edward Mason, then the guru of industrial organization in the Graduate School of Arts and Sciences at Harvard began an experiment. He encouraged his doctoral students to investigate topics that opened up new territory between economics and business, and between economics and law. Mason believed that these topics called for an interdisciplinary approach. He also wanted to accumulate reliable data on the workings of the modern business concern. To do this he asked some of his friends on the business school and law faculties at Harvard to help his students gain access to particular firms and to data on their industries, and also to help them master techniques of analysis and perspectives that had few exponents on his side of the Charles River.
Donald F. Heany and William D. Vinson
Companies that fail to develop new products will eventually see profits diminish. Yet for a surprising number of companies, product innovation is not a strength. The authors call…
Abstract
Companies that fail to develop new products will eventually see profits diminish. Yet for a surprising number of companies, product innovation is not a strength. The authors call for a reexamination of the way new product development is approached.
Bradley T. Gale and Richard Klavans
In the long run, higher quality captures a larger market share and results in higher profits. But with technology constantly changing, today's quality products may not be…
Abstract
In the long run, higher quality captures a larger market share and results in higher profits. But with technology constantly changing, today's quality products may not be tomorrow's. By assessing how customers perceive quality, one can formulate sound strategies and commit to long‐term investment with greater confidence.
Market share statistics indicate that success breeds success. To learn to take full advantage of your share, see “Do's and Don'ts,” page 34.
One hundred and ninety of the world's largest and most diversified companies have added a new capability to their arsenal of planning tools. They have tapped into a new and unique…
Abstract
One hundred and ninety of the world's largest and most diversified companies have added a new capability to their arsenal of planning tools. They have tapped into a new and unique collection of strategic experiences of product‐line businesses now maintained by The Strategic Planning Institute (SPI). Member companies use information derived from this data base as one additional input to:
C.K. Prahalad and Richard A. Bettis
Current research offers alternative explanations to the “linkage” between the pattern of diversification and performance. At least four streams of research can be identified. None…
Abstract
Current research offers alternative explanations to the “linkage” between the pattern of diversification and performance. At least four streams of research can be identified. None of these can be considered to be a reliable, predictive theory of successful diversification. They are, at best, partial explanations. The purpose of this paper is to propose an additional “linkage,” conceptual at this stage, that might help our understanding of the crucial connection between diversity and performance. The conceptual argument is intented as a “supplement” to the current lines of research, rather than as an alternative explanation.
B. Wayne Rockmore and Foard F. Jones
This study examined the relationship between 130 firm's business investment strategy and their firm performance, as measured by return on investment (ROI) and earnngs per share…
Abstract
This study examined the relationship between 130 firm's business investment strategy and their firm performance, as measured by return on investment (ROI) and earnngs per share (EPS). ROI was used as the accounting performance measure and EPS was used as the market‐based performance measure. Results indicate that the accounting performance measure (ROI) may be more appropriate for firms pursuing share‐increasing and turnaround business investment strategies. Whereas both accounting (ROI) and market‐based (EPS) measures may be more appropriate for firms pursuing less risky profit‐oriented business investment strategies.