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Turbulent Environments

- Technological, Economic, Competitive, Labor, Resource, Customer, Legal/Regulatory, Global

Sustainable Competitive Advantage

1) External changes force internal change

2) No formula for success in new environ.

3) Turb. Presents opportunity

MGMT *Focus on current, improve efficiency

- Set objectives, coordinate resources to attain

- Plan, strategize, organize, evaluate, supervise

ENTR *What can be…

- Vision, opp. Seeker, innovate, create, risk-taker

- Combine to form ENTR Manager

5 Stages of Company Evolution

* Companies grow & prosper until reaching a crisis point…each stage culminates in a crisis point. They achieve next level, begin decline, fail or are acquired.

1) Creativity (Start-up – Informal)

Crisis point: Greater size requires more professional MGMT, formal structures, admin. systems, budgets and controls

2) Direction (Company formalizes)

Crisis Point: Middle MGMT & employees demand more autonomy * Top Managers give up responsibilities/control (delagate)

3) Delegation (Create semi-autonomous divisions)

Crisis Point: MGMT loses control over highly diversified autonomous operations

* Inconsistent strategic directions, managers try to run their own shows

4) Coordination (Centralize operations)

- Crisis Point: Procedures take place of problem solving (red-tape & bureaucracy) *Rigid systems constrain organization

5) Collaboration (Simplify systems, experiment, teamwork, re-assign staff) Crisis Point: Achieving sustainable entrepreneurship over time

*ENTR spirit systematically destroyed by bureaucrac.

| Stage 1Creativity | Stage 2Direction | Stage 3Autonomy | Stage 4Coordination | Stage 5Collaboration |

MGMT Focus | Make &Sell | Efficiency of op. | Expansion of market | Consolidation of org. | Problem solving & innovation |

Org .Structure | Informal | Centralized | Decentralized | Line-staff & product groups | Matrix of teams |

MGMT Style | Indiv. & ENTR | Directive...