Donald L. Lester

Strategy as a response to organizational uncertainty: an alternative perspective on the strategy‐performance relationship

Much of the literature suggests that strategies are formulated in light of perceived environmental conditions and internal capabilities. This study supports the notion that strategy is formulated in part as a response to management uncertainties about competitors, customers, and the environment. Responses from 137 wholesale grocers demonstrate that uncertainty varies by generic strategy, suggesting that businesses consider both the type and degree of uncertainty when crafting a competitive strategy. Specifically, the data suggest that viable strategic options may be limited more by the cognitive and perceptual abilities of an organization’s managers than by objective measures of factors such as organizational resources and industry competitiveness. The premise that strategy must “fit” with organizational or environmental factors to be effective may be incomplete. Rather, a strategy – to be successful – should also fit with the psychological characteristics and constraints of the managers responsible for its formulation and implementation.

Aligning factors for successful organizational renewal

Organizations struggling to compete can do nothing while revenues and profits decline, putting their very survival at risk. Or they can recreate themselves by altering their situation, strategy, structure, or decision‐making style. The second choice, organizational renewal, is the focus of this study of five diverse businesses that renewed themselves through the proactive alteration of one or more of these four factors. Four research questions were explored using extensive qualitative methodology. Results highlight the need for alignment among situation, strategy, structure, and decision‐making style, as well as the importance of timing in the process.

Organisational life cycle stage and strategy: must they match?

Organisations are thought to evolve through a series of growth stages as they mature, a process described as a life cycle of organisations. Each stage of the life cycle is characterised by four major factors: situation, decision-making style, structure, and strategy. While the first three are commonly accepted, the fit between strategy and life cycle stage is much less clear. This paper proposes a life cycle/strategy relationship based on a new strategic typology developed by Parnell and Carraher (2002) to determine if an ideal strategy exists for each life cycle stage.

Hitting the Brakes: Toyota in Crisis

The decade from 2000 until 2010 was a turbulent time for Toyota Motor Company. The carmaker came under significant criticism from the United States government, consumers throughout the world, and media critics amid allegations of poor quality control and vehicle safety concerns. Problems with accelerators and brake systems were found on several of its most popular models, a situation initially exacerbated by the slow and somewhat tentative response from top management. Toyota was accused of not addressing early warning signs that appeared several years before the crisis received intense negative publicity. Toyota struggled to retain the confidence of consumers and governmental regulators, eventually recalling approximately eight million automobiles.

UNCERTAINTY, STRATEGY AND PERFORMANCE IN SMES: EVIDENCE FROM CHINA, TURKEY, AND THE UNITED STATES

Numerous competitive strategy-performance studies have been published, but relatively few have assessed industries in emerging economies. This study examined the strategy-performance linkage among small- to medium-sized enterprises (SMEs) in China, Turkey, and the United States. The combination strategy-performance linkage was supported in Turkey and the U.S. In China, however, the highest performing strategic group emphasized a focus orientation accompanied by neither cost leadership nor differentiation, and the lowest performing group was comprised of low cost businesses. Findings suggest that managers in all three nations comprehend the concepts of differentiation, cost leadership, and focus, but the means by which these strategic emphases are employed can differ markedly.

AAA Construction: A Family Business in Crisis

This case demonstrates the difficulties encountered by small family businesses when the founder passes away without having properly prepared for succession. AAA Construction was a company held together for over thirty-six years by a family patriarch, Jack Hudson. His choice of his grandson to succeed him was obvious. However, there were serious questions about whether David Robbins up to the task.