A New Perspective

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A New Perspective

The example below puts into a radically different perspective the issues raised in the previous chapters. It will show why the rational model cannot always be trusted.

ExamplePerspective

Honda
Honda is now one of the leading manufacturers of motorbikes. The company is credit with identifying and targeting an untapped market for small 50cc bikes in the US, which, enabled it to expand, trounce European competition and severely damage indigenous US bike manufacturers. By 1965, Honda had 63% of the US market. But this occurred b accident.
On entering the US market, Honda’s planned strategy was to compete with the larger European and US bikes of 250ccs and over. These bikes had a defined market, and we. sold through dedicated motorbike dealerships. Disaster struck when Honda’s larger machines developed faults – they had not been designed for the hard wear and tear imposed by US motorcyclists. Honda had to recall the larger machines.
Honda had made little effort to sell its small 50 cc motorbikes – its staff rode them errands around Los Angeles. Sports goods shops and ordinary bicycle and department stores had expressed an interest, but Honda did not want to confuse its image in its ‘target’ market of men who bought the larger bikes. The faults in Honda’s larger machines meant that reluctantly, Honda had no alternative but to sell the small 50cc bikes just to raise money. They proved very popular with people who would never have bought motorbikes before. Eventually, the company adopted this new market with enthusiasm with the slogan: ‘You meet the nicest people on a Honda.’
Henry Mintzberg’s overview of the work of many writers on strategy suggests five ways in which the term strategy is used. A strategy can be a plan, ploy pattern, position or perspective.
They are not mutually exclusive. The strategy had emerged, agents managers’ conscious intentions, but they eventually responded to the new situation.
‘P’                 Comment
Plan            A ‘consciously intended course of action’.
Poly            A manoeuvre in a competitive game. For example, a firm might add unnecessary plant capacity. The strategy is not to produce the goods but to discourage a competitor from entering the market.
Pattern
Position      Emergent strategies.
Perspective           Environmental fit and relationships with other organisations. A position might be a distinctive niche, whereby the firm makes distinctive products or services or exploits a distinct competence.
A unique way of looking at the world, of interpreting information from it, judging its opportunities and choices and acting. Different strategic perspectives might respond to the same environmental stimulus in different ways.