Current Developments (reader p7)

Today I have been...

Reading more of the reader.

Why?

Compulsory reading

So What?

Recently strategic management has seen many more developments, including strategy dynamics.

D'Aveni(1994)'s "hypercompetition".

The theory and practice of balancing long-term strategy and short term needs includes:-

• Competitive dynamics
• Dynamic Capabilities
• Systems Dynamics
• Change management

Strategy emphasis is now on dynamic theories of competition.

Ghematat (2002:64):-

the dynamic question of how businesses might create and sustain competitive advantage in the presence of competitors who could not be counted on to remain inert all the time

Game Theory. Is a study of the decisions and interactions of players where the payback for the decisions depends on each other's choices as well as their own.

Zero-sum games: one winner, and winners gaines = sum of other players losses

non-Zero-sum games: allows opportunity for co-operation as well as competition

Non-zero-sum games are what are relevant for strategy. Many firms rely on being able to work with other firms in various capacities. A kind of symbiotic relationship exists.

Chaos theory (Stacey, 1993), complexity theory (Brown & Eisenhardt, 1998), the strategic use of knowledge (von Krogh et al, 2000), evolutionary biology, cognitive psychology and real options theory (Schwartz and Trigeorgis, 2001) are new strategic analysis approaches. (Reader, p7-8)


Experimentation and learning must take place within organisations.


How will I use it?

This is all relevant background info.