Week 91(11.1.09)

Learn ( Strategic Management as "fit" or "stretch" - Exploring Corporate Strategy Book, Pg 25 - 27)

2 types:

The processes of strategy development raise a issue which concerns the extent to which the emphasis is on developing strategy on the basis of "fit" with the environment as management understand it; or "stretching" the organisation on the basis of resources and competences which can create opportunities for strategy development.

(1) The notion of fit sees managers trying to develop strategy by identifying or being sensitive to the organisation's environmental forces and developing the organisation's resources to address these. Here it would be seen as important to achieve the correct positioning of the organisation; for example, in terms of the extent to which it meets clearly identified market needs.

(2) Success may result from creating strategies not so much on existing market opportunities, but on the basis of views of the future in which competences unique to the organisation provide advantages over competition or create new opportunities, even new markets. This stretch view of strategy development emphasises the need to be acutely aware of the special competences of the organisation.

Unlearn

NIL

Relearn

Practicality and traditionally, Pfizer emphasis on developing strategies adopting the more incremental path of development ie to place most of its investments in businesses which have found successful market positions or have identified attractive markets.

However, with Pfizer's new structure as Emerging Market Business Unit (EMBU); Pfizer is transforming into a culture of new approach in the market; with trying to identify businesses with particular competences which it can help develop to give competitive advantage or create new opportunities.