The Company Strategy Of Transformation And Upgrading

For this essay we have selected some companies that are in a state of transition. The author examines how growing companies adapted their corporate strategy after the initial start up phase. Based on real life examples, the author tries to find some communality in the strategy transition.The author has noticed that all the companies have an internal strategy team, reinforced by external consultants, yet all too often the transition strategy fails, either because of a badly chosen strategy, or lack of execution discipline.In the essay the author demonstrates that a main cause for the wrong choice of transition strategy lies in the standard and dogmatic approach taught in business school all over the world. The consultants graduated from the business schools will first look at the outside company environment, including macroeconomic environment, policy environment, economic environment, social and cultural environment, technological environment, the industry environment, competitive structure etc., and then analyze the internal environment, including core competences, resources and capacity, etc. The internal and external findings are input into tools such as SWOT analysis, which results are the basis for the strategic conclusions. How can a strategy generated in this way be helpful? The reasons behind an unsuccessful execution of a transition strategy can be summarized under2headings: lack of resources and lack of talent.Based on the analysis of the failure modes, the author proposes a creative alternative for transition strategy. Prior to the application of the standard tools, first define the’strategy style’of the company, in other words the rule of the strategy. Then we need to apply the’rule of strategy’ to guide us through the procedure of transition strategy structuring. As illustration, the author takes two companies with different strategy styles as examples and discussed the challenges they met and how they overcame the obstacles.