Corporate Entrepreneurship and Strategic Management: Insights From a Process Study

Article Abstract:

A model of the strategic process concerning entrepreneurial activity in large, complex organizations is presented. Firms need diversity and order in their strategic activities to maintain their viability. Diversity results primarily from autonomus strategic initiatives of participants at the operational level. Order results from imposing a concept of strategy on the organization. Managing diversity requires an experimentation and selection approach. Top management's critical contribution consists in strategic recognition rather than planning. Top management can make sure that entrepreneurial activities correspond to their strategic vision. Also, diversity and order must be balanced. A model of the interaction of strategic behavior, corporate context, and the concept of strategy is given. A table of generic situations concerning the state of corporate entrepreneurship in large corporations is available.

Management, Management Style, Entrepreneur, Companies, Policy, Organizations

---

Effects of Planning Aids and Presentation Media on Performance and Affective Responses in Strategic Decision-Making

Article Abstract:

Two aids to strategic decision making are presented: the Dialectical Inquiry System (DIS) and the Devil's Advocate (DA). These techniques are designed to help managers analyze staff proposals. A review of previous research shows conflicting results. A comparative study is conducted to examine DA and DIS effects on alternative strategies, final choices of strategies, affective responses, and medium used in presenting DA and DIS. Subjects analyze case studies within four groups: C, E, DA, and DIS. Half the subjects receive videotape presentation and the other half receive written presentation. Results compare the DIS plan-counterplan format with the DA plan-critique format. The DIS does not encourage a strategic focus, promote strategic alternatives, or influence expert report. DIS leads to greater satisfaction than the E approach. The medium used influences the effectiveness of the techniques.

Comparative literature

---

The Capital Asset Pricing Model and Strategic Planning: Response to Wernerfelt

Article Abstract:

In comments on 'The Capital Asset Pricing Model' (Management Science: 28, 1166-1173) Wernerfelt argues that the value of a firm on the stock market is not affected by diversification. Because investors can achieve on their own reduction in risk by combining in their portfolios the securities of different firms, they are unwilling to pay a higher price for stock of a firm that is diversified. However, due to market imperfections all assets do not lie exactly along the security market line (SML); a conglomerate, therefore may be able to raise the value of its stock with a merger policy. Another factor is the risk of default. A higher value may be placed on a diversified firm because it offers greater perfection against such risk. If these two factors are significant, conglomerate managers may be able to increase the value of their firm in the stock market.

Stock markets, Strategic Planning, Business Planning, Stock Market, Stock, Diversified Companies

Similar abstracts:

• Abstracts: Steps in project management - learning from experiences. The wagon train. A challenge to managers as developers
• Abstracts: Corporate Flying Boom. The Missing 'H' in Strategic Planning. THE UNSEEN CORPORATE 'WAR'
• Abstracts: Jack Eggert and Associates Understands Needs of Grocery Stores. Software Profile: STORES
• Abstracts: Tackling Micro-Mainframe Incompatibility Problems. Mini and Mainframe Vendors Have Answers to DP Professional Problems
• Abstracts: Computer Secrets Guarded in New Mini Store. Computer-Based Library in Joint Venture. Safeguard Computer Output

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.