It is necessary to maintain a certain rate of growth for the sake of survival of any enterprise. However, no industry in which an enterprise can carry out the operation strategy can have an unlimited growth. The stage of maturity confronts every industry and finally it faces the decline also. Consequently, it becomes necessary to carry out the reconstruction of the operations in harmony with the life cycle of the industry, in order to continue to survive and develop.
The most basic aspect to be taken care of in such an event is the decision regarding the operation portfolio and the selection of domain. These are, in fact, the problems concerning the renewal or metabolism of operations and acquiring as well as distribution of necessary management resources required for it.
The overall strategy of the company is also known as the strategy of operation structure and the relevant problem here is how to acquire and develop the management resources required for the operation of one’s own enterprise in the future. The management resources, particularly the knowhow, technology, brand image, trust, the enterprise image as built up outside the enterprise and other information resources are highly specific to the respective enterprise and are very difficult to procure or obtain from the market. On the other hand, these information resources are accumulated through the day-to-day operations, therefore, these are very closely related to the strategic decisions like what type of operations are to be carried out by one’s company and upto what extent.
In this chapter, we shall learn about the growth and diversification of enterprise. This will be followed by a better understanding about the definition of domain structure of operation portfolio. The major aspect covered in this chapter is the operation portfolio and the resource distribution. Any enterprise can make use of only a limited management resource at any given time. The resource development strategy is a basic policy which decides how to distribute the management resources. The techniques like PPM analysis as developed by consulting companies like McKinsey, BCG etc can be used for making the decision the regarding management resource distribution in a rational manner. Here, we shall take up the PPM and its limitations.
In this chapter, the resource development strategy has been explained with the help of examples. One of the keys of the resource development strategy is the problem related to the management resources that are required for the growth, whether these should be developed and accumulated within the enterprise or acquired from outside. Generally, the former is known as in- house growth and the latter is known as the growth from outside. M&A as well the strategic cooperation are taken up as the comparing it with in-house growth. The strategic cooperation has been explained with main focus on information resources.
The most basic aspect to be taken care of in such an event is the decision regarding the operation portfolio and the selection of domain. These are, in fact, the problems concerning the renewal or metabolism of operations and acquiring as well as distribution of necessary management resources required for it.
The overall strategy of the company is also known as the strategy of operation structure and the relevant problem here is how to acquire and develop the management resources required for the operation of one’s own enterprise in the future. The management resources, particularly the knowhow, technology, brand image, trust, the enterprise image as built up outside the enterprise and other information resources are highly specific to the respective enterprise and are very difficult to procure or obtain from the market. On the other hand, these information resources are accumulated through the day-to-day operations, therefore, these are very closely related to the strategic decisions like what type of operations are to be carried out by one’s company and upto what extent.
In this chapter, we shall learn about the growth and diversification of enterprise. This will be followed by a better understanding about the definition of domain structure of operation portfolio. The major aspect covered in this chapter is the operation portfolio and the resource distribution. Any enterprise can make use of only a limited management resource at any given time. The resource development strategy is a basic policy which decides how to distribute the management resources. The techniques like PPM analysis as developed by consulting companies like McKinsey, BCG etc can be used for making the decision the regarding management resource distribution in a rational manner. Here, we shall take up the PPM and its limitations.
In this chapter, the resource development strategy has been explained with the help of examples. One of the keys of the resource development strategy is the problem related to the management resources that are required for the growth, whether these should be developed and accumulated within the enterprise or acquired from outside. Generally, the former is known as in- house growth and the latter is known as the growth from outside. M&A as well the strategic cooperation are taken up as the comparing it with in-house growth. The strategic cooperation has been explained with main focus on information resources.