Chapter

Choosing a Basic Structure—Strategic Groups

DAVID A. NADLER, michael l. tushman and mark b. nadler

in Competing by Design

Published in print October 1997 | ISBN: 9780195099171
Published online October 2011 | e-ISBN: 9780199854868 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780195099171.003.0005
Choosing a Basic Structure—Strategic Groups

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Because of the emergenge of technological innovations and threats posed by other countries that may be able to produce watches at much lower costs, SMH, the combined operations of ASUAG and SSIH, attempted to come up with a strategy that involved coming up with a wide variety of products to cater to customers of different backgrounds all over the world. It was thus important also to identify how the company's activities such as research and development, sales, manufacturing, and other such aspects should be grouped. The different aspects of this research design entails reassigning staff and reallocating resources. This chapter describes the options for strategic grouping, identifies the strengths and weaknesses of each approach, and discusses how such is linked with information processing and business-unit strategy.

Keywords: SMH; company activities; strategic grouping; reallocation; reassignment; information processing; business unit

Chapter.  5332 words.  Illustrated.

Subjects: Organizational Theory and Behaviour

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