The Use of the Growth-Share Matrix in Strategic Planning

Hax, Arnoldo C.; Majluf, Nicolás

doi:10.1287/inte.13.1.46

Cited by 49 publications

(35 citation statements)

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“…This argument is grounded in the importance that effectiveness has in guaranteeing the organization's survival in ever-changing contexts. Turbulent environments do not hold in the same state long enough for companies to be able to find a favorable competitive position and exploit it until it, as hoped, becomes a 'cash cow' (Emery & Trist, 1965;Hax & Majluf, 1983). Thus, the most important skill an organization can possess in this type of context is the ability to jump from one opportunity to the next, accompanying the flow of the market.…”

Section: Time Environment and Strategymentioning

confidence: 99%

Organizational Time: a Dialectical View

Cunha

2004

Organization

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We present twelve propositions constituting a contribution to a contingency view of time in organizations and synthesize apparently opposite perspectives of time. To articulate them, we relate the 'planning', 'action' and 'improvisation' strategic orientations to the 'dependent', 'independent' and 'interdependent' perspectives of the environment. Then, we relate these strategic orientations related to approaches to the problems of scheduling, synchronization and time allocation. 'Action' strategies rely on event time to handle scheduling, use entrainment to synchronize with their environment and view time as linear. 'Planning' strategies use even time to handle scheduling, impose their internal pacing upon t he environment and view time as cyclic. 'Improvisation' strategies use 'even-event' time to handle scheduling, synchronize via 'internal-external' pacing and hold a spiral view of time. Our argument strengthens the case for a more deliberate approach to time in organizations and favors a dialectical view of organizational phenomena. Keywords: action, contingency, dialectics, improvisation, planning, synthesis, time. 3 It is hard to find many explicit debates in the organizational literature on time. However, this tranquility is only apparent. If we look at the ongoing debates in the strategy literature, we can relate some of the most important of them to time -related issues. The debate between the so-called 'design ' and 'learning' schools (Ansoff, 1991; 1 994;Mintzberg, 1990Mintzberg, , 1991Mintzberg, , 1994 echoes the difference between cyclic and linear perspectives of time. The 'design' school, which contends that the best performing organizations are those that plan their future, often assumes that the past is a good guide to the future, an assertion shared by those who see time as a cyclic phenomenon where the past is often a template for the future. The learning school, which contends that the best performing organizations are those that act out their future, often asserts that relying on the past is a threat to the future, mimicking, in a way, the unimportance of the past shared by those who see time as a linear phenomenon, never threading the same path twice.Time has also been used explicitly to address other debates i n the field of organization studies. One of the most recent of such attempts was Brown and Eisenhardt's (1997) use of the concept of 'even time' to strengthen the case in favor of incremental strategies. These authors demonstrated that successful new product development processes were those that were time-paced and not those that were eventpaced. This means that instead of relying on discrete external events (event time), such as a new product launch by a competitor, companies should act according to the rhythm it set for itself (even time), launching a new product every six months, for example. Taken as a whole, these three instances reflect the realized and potential contribution that research on time has in store for those concerned with the strategy process. However,...

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Section: Time Environment and Strategymentioning

confidence: 99%

Organizational Time: a Dialectical View

Cunha

2004

Organization

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“…The new BCG "matrix for the 80s", shown in Figure 6, took more account of the structure of competition. It recognized that share leadership/cost reduction strategy works best in the "Volume" section (Hax & Majluf 1983). The influence of the new Industrial Organisation Economics and particularly the Michael Porter orthodoxy emanating from Harvard is evident in this kind of approach.…”

Section: Lorenz 1981mentioning

confidence: 99%

“…Assumptions/Evidence Criticisms related to a simple focus on internal funding (Wensley 1981, Hax & Majluf 1983, the value of investing in growth markets (Wensley 1981, to competitive value of market share (Day 1977), the link between market share and cash flow (Abell & Hammond 1979), particularly in the case of "dogs" (Hambrick et al 1982).…”

Section: An Evaluation Of the Academic Criticisms Of The Boston Boxmentioning

confidence: 99%

“…Its detractors pointed out that it may show the corporation where it is and where to go, but not how to get there (Lorenz 1981). In particular, "harvesting" cash cows (Lorange 1975), recognizing interdependencies (Hax & Majluf 1983), and generally establishing operational decisions (Wind & Claycamp 1976) can prove very difficult.…”

Section: An Evaluation Of the Academic Criticisms Of The Boston Boxmentioning

confidence: 99%

“…In the particular assumption of internal funding, Henderson's original paper does mention leverage and the stockmarket's role in "controlling it", and therefore recognize connections between share price, gearing and profitability. Similarly, Hax & Majluf point out that the key assumption is really "a belief that ultimately any external debt will have to be matched by internal cash flow" (Hax & Majluf 1983).…”

Section: An Evaluation Of the Bcg Matrixmentioning

confidence: 99%

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