Implanting Strategic Management (2nd Edition)

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Summary: Evolution of Strategic Management Theory
Review: Implanting Strategic Management is a compilation of a life-timework that organizes the major contributions in the field under oneumbrella, as Ansoff ingeniously develops a model that divides the competitive environment into five levels of turbulence: 1) repetitive, 2) expanding, 3) changing, 4) discontinuous and 5) unforeseen. His strategic success theorem states: For optimal success of an organization, the strategic aggressiveness (both technological and marketing) and the components of capability (both managers and organizational climate, competence and capacity) must match the level of environmental turbulence in which the organization competes. Ansoff uses a five-point integral scale to also measure the corresponding five levels of strategy: 1) stable, 2) reactive, 3) anticipatory, 4) entrepreneurial and 5) creative and the corresponding five levels of capability: 1) custodial, 2) production, 3) marketing, 4) strategic and 5) flexible, as he develops a strategic diagnostic questionnaire to obtain the perceptions of the general managers of an any organization. When there is alignment or minimal gap between the average level of competitive environment and each of the components of strategy and capability, then the organization should have optimal success, which has been validated by several doctoral dissertations under Ansoff. This book is a comprehensive integration of several of Ansoff's scholarly articles, enhanced with each edition. Well thought out concepts involving strategic segmentation, resistance to change, optimizing strategic portfolio, strategic dimensions of technology, societal strategy issues, real-time strategic response to managing surprising changes, strategic issue management,and environmental surveillance for strong signals and weak signals in anticipating environmental change. Ansoff's theory says that at levels 1 to 3, a firm can extrapolate the future from the past. However, at level 4 (discontinuous) and level 5 (surpriseful), strategic management must be used by an organization to realistically plan for future successes in a highly turbulent competitive environment. Ansoff's theory applies to all types of organizations, and he explains how industries can have unexpected shifts from one level of turbulence to another, as in the case of Apple Computer Corp. When Apple created the personal computer, it also created a whole new marketplace with new customers at an initial turbulence level of 5, which shifted to a level 3 of marketing mentality, which seemed to be why Steve Jobs, a creative visionary, was replaced by Scully, a marketing guru, as the Board wanted to milk their "cash cow" and not be continuously creating new dimensions. However, when the envirnoment shifted up to level 4, Apple almost went out of business when they did not respond fast enough. Level 4 is discontinuous, where the future is only partially predictable from the past, and it requires 4) entrepreneurial strategy and 4) strategic capability of the firm for optimal success. Steve Jobs was brought back in as interim CEO, and he was able make Apple once again competitive by enhancing the company's technological and marketing strategy, as well as its organizational capability, by bringing the firm's strategy and capability components up to level 4, so as to be successful. (Note: The above scenario is used by the reviewer as a realistic example of Ansoff's theory being applied in the real world.) In summary, Ansoff's work is far beyond anything published in the field, and one of the most comprehensive empirical studies that validates his complete theory is called "The Financial Performance of Technology-Driven Firms Aligning Strategy, Capability and Environment" by Richardson, John F. 1996. (Ann Arbor, MI: UMI No. 9623859), 564 pp. or URL: www.ilarsystems.com. This reviewer recommends Ansoff's book Implanting Strategic Management to any individual who desires to learn from the top scholar in the field, considered by many world authorities as the "Father of Strategic Management." This reviewer has read numerous works by the leading scholars in the field, and nobody has integrated the various contributions under one umbrella or into one paradigm, as Ansoff has done. Scholars come from all corners of the world to study under Ansoff and his disciples at United States International University, San Diego, California, USA. When is America going to wake up and learn from this "latter-day saint" of strategic management, while he is still with us? We ignored Demming, considered the "father of quality management," for years until he became infamous in Japan, teaching the Japanese firms how to dominate world markets with quality management. Some of the best minds in the world come every year to study under Ansoff, but few Americans are in their numbers.

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Summary: One of the Best Books of the Father of Strategic Management
Review: This is one of the best books written by Dr. Igor Ansoff, known worldwide as the "Father of Strategic Management". This book, in addition to its theoritical content, provides managers with a step-by-step guide to pilot their firms through the turbulent environments in the 21st century. This is one of the best books available on the topic of strategic management.