This article supports all of the existing models that we have talked about so far in class. It is a good real life example of the theories we have been reading about it Strategy Safari and in the articles we have been studying for class. In order to be the successful company that Honda is today that had to employ many different strategies. Because the company as a whole was so flexible, leaders Honda and Fuijsawa could make decisions and change things whenever they need to in order to grow the company.
“The Honda Effect” focuses on a new approach to strategy, the idea of emergent strategy. In this new approach companies are encourage to try new ideas and tactics and if or when they fail to go back and learn from the attempt and gather as much information from them as possible, then try a new strategy based on correcting the mistakes of the last attempt until the company gets it right.
It seems that the grass is always greener on the other side when it comes to these kinds of things. On one hand you can have some one like the Japanese saying that you should diversify and cover all of your bases, and another that says you should be focused on one only your strengths. Either way, any company can benefit from applying either of the two. It just seems to depend on the individual situations that a company is facing as well as there own abilities.
Outline
1) Strategy Definitions
a. Webster: large-scale planning and direction of operations
b. Business context: process by which a firm searches and analyzes its environment and resources to
i. Select opportunities
ii. Make discrete decision
2) Strategy Formulation
a. Generally assumed to be driven by senior managers whom we expect to set strategic direction
b. Has been extensively influenced by empirical models and concepts
c. Often associated with a laborious strategic planning process
3) 2 Key factors leading to the British demise in motorcycle industry
a. Market share loss and profitability declines
b. Scale economy disadvantages in technology, distribution, and manufacturing
4) “We tend to impute coherence and purposive rationality to events when the opposite my be closer to the truth”
5) Conclusion
a. “strategic accommodation” or “adaptive persistence”
b. New definition of strategy: “all the things necessary for the successful functioning of organization as an adaptive mechanism.”
If you have any strategic problems / issues, contact Dr. Millage with Inspire Consulting Inc. – He has consulted with over 120 companies and always implements his company tagline and mission: “Profit Improvers for Business.”