Stanford GSB Sloan Program S258 Strategic Management

1
Stanford GSBSloan ProgramS258Strategic
Management

• 18 Strategy Process
• Xerox and Fuji Xerox

2
The Adaptive Corporation

• Other names
• Phenomenon
• able to explore and exploit, have efficiency plus
  growth, adaptiveness and innovation
• can effectively run multiple businesses
• make both large (global) and small (local)
  changes
• A rare creature

3
Xerox The Accidentally Adaptive Corporation

• Key to Xeroxs rebirth in the 1990s was the
  adoption of FX ways and products
• These would never have existed if X had had its
  way and had required its strategy be implemented
• The JV structure gave protection and allowed the
  possibility of variation
• Cultural, market and geographic distance gave the
  impetus to respond to local Japanese conditions
• FX managers key role

4
Autonomous and Induced Strategy Processes

• Both have a role
• The danger is in role conflict and confusion
  across levels
• e.g., CEO wants to manage the autonomous or stamp
  it out
• Ambiguous and difficult role for middle managers
  to select, protect and link the emergent while
  driving the official
• Front-line responsibilities

5
Partnerships

• Contractual and non-contractual elements
• Important to get understandings up front
• Not enough to get the initial contract right
  must evolve
• Need to work on the relationship
• Balance of temptation and punishment (repeated
  game logic)

6
Partnership and Learning

• Loose coupling allows for more variation
• Need to work on selection and retention
• Often learning with or from partner is objective
• Concern with leakage