A Decision Model to Predict the Optimal Size of the Diversified Management Industry from the View of Profit Maximization and Coordination of Industrial Scale

To avoid the risk of single and homogeneous development, China’s coal enterprises have explored a diversified development model and are actively developing coal-based industries such as electric power, coal chemical, coal equipment manufacturing, logistics, and building materials. In previous studies of the diversification strategy, the focus has been placed on the motivation for diversification, the measurement of diversification, and the relationship between diversification and enterprise performance. From an enterprise strategic decision, we predicted the optimal size of each industry by considering the limited enterprise capital, human resources, the synergetic relationship among industrial clusters (mainly the scale coordination), and policy factors. The optimal decision model for diversified industrial management was constructed using linear programming methods. The decision target was to maximize the enterprise’s profit, but to also consider the social and environmental benefits. One of the largest listed coal enterprises in China, China Coal Energy (also a typical diversified enterprise), was selected as a case for analysis. Data were collected from surveys and annual reports from 2010 to 2014. The optimal scales of coal, electric power, chemical, and equipment manufacturing were predicted, and could be used as a reference for future enterprise production decisions. Furthermore, this decision model can be used as a reference for other diversified enterprises

Strategy implementation: what is the failure rate?

It is often claimed that 50–90% of strategic initiatives fail. Although these claims have had a significant impact on management theory and practice, they are controversial. We aim to clarify why this is the case. Towards this end, an extensive review of the literature is presented, assessed, compared and discussed. We conclude that while it is widely acknowledged that the implementation of a new strategy can be a difficult task, the true rate of implementation failure remains to be determined. Most of the estimates presented in the literature are based on evidence that is outdated, fragmentary, fragile or just absent. Careful consideration is advised before using current estimates to justify changes in the theory and practice. A set of guiding principles is presented for assisting researchers to produce better estimates of the rates of failure

Universal Rights and Wrongs

This paper argues for the important role of customers as a source of competitive advantage and firm growth, an issue which has been largely neglected in the resource-based view of the firm. It conceptualizes Penrose’s (1959) notion of an ‘inside track’ and illustrates how in-depth knowledge about established customers combines with joint problem-solving activities and the rapid assimilation of new and previously unexploited skills and resources. It is suggested that the inside track represents a distinct and perhaps underestimated way of generating rents and securing long-term growth. This also implies that the sources of sustainable competitive advantage in important respects can be sought in idiosyncratic interfirm relationships rather than within the firm itself

Performance measurement : challenges for tomorrow

This paper demonstrates that the context within which performance measurement is used is changing. The key questions posed are: Is performance measurement ready for the emerging context? What are the gaps in our knowledge? and Which lines of enquiry do we need to pursue? A literature synthesis conducted by a team of multidisciplinary researchers charts the evolution of the performance-measurement literature and identifies that the literature largely follows the emerging business and global trends. The ensuing discussion introduces the currently emerging and predicted future trends and explores how current knowledge on performance measurement may deal with the emerging context. This results in identification of specific challenges for performance measurement within a holistic systems-based framework. The principle limitation of the paper is that it covers a broad literature base without in-depth analysis of a particular aspect of performance measurement. However, this weakness is also the strength of the paper. What is perhaps most significant is that there is a need for rethinking how we research the field of performance measurement by taking a holistic systems-based approach, recognizing the integrated and concurrent nature of challenges that the practitioners, and consequently the field, face

The Ethics of Corporate Governance

How should corporate directors determine what is the right decision? For at least the past 30 years the debate has raged as to whether shareholder value should take precedence over corporate social responsibility when crucial decisions arise. Directors face pressure, not least from ethical investors, to do the good thing when they seek to make the right choice. Corporate governance theory has tended to look to agency theory and the need of boards to curb excessive executive power to guide directors' decisions. While useful for those purposes, agency theory provides only limited guidance. Supplementing it with the alternatives - stakeholder theory and stewardship theory - tends to put directors in conflict with their legal obligations to work in the interests of shareholders. This paper seeks to reframe the discussion about corporate governance in terms of the ethical debate between consequential, teleological approaches to ethics and idealist, deontological ones, suggesting that directors are - for good reason - more inclined toward utilitarian judgments like those underpinning shareholder value. But the problems with shareholder value have become so great that a different framework is needed: strategic value, with an emphasis on long-term value creation judged from a decidedly utilitarian standpoint

The implications of service quality gaps for strategy implementation

This article addresses the problem of service quality strategy implementation and proposes three interrelated models: a static model of the organisation; a comprehensive dynamic model of the implementation process, both synthesised from the literature; and a mixed model, which integrates static and dynamic models. The mixed model is combined with the service quality gaps (SQGs) model, drawn at a previous congress paper, to propose a map of the pattern of SQGs occurring at each implementation stage; the organisational variables that can be manipulated to eliminate SQGs; and several implications to practising managers

Analyzing sustainable competitive advantage

In today%s dynamic business environment, a key challenge for all companies is to make adaptive adjustments to their manufacturing strategy. This study demonstrates the competitive priorities of manufacturing strategy in hydro-power case company to evaluate the level of sustainable competitive advantage and also to further analyze how business strategies are aligned with manufacturing strategies. This research is based on new holistic analytical evaluation of manufacturing strategy index, sense and respond, and sustainable competitive advantage models. These models help to describe, evaluate, and optimize resource allocation to meet the performance requirements in dynamic decision making. Furthermore, these models evaluate operational competitiveness for manufacturing strategies according to the multi-criteria priority. The results show that the adjustments of competitive priorities in manufacturing strategies by implementing the proposed holistic analytical models are helpful in strategically managing business operations. The discussion derives the most critical attributes in business operations while alignment of resource allocation with competitive priorities help to strategically focus those attributes. In conclusion, we argue that resource allocation and manufacturing strategies have become the most important capabilities in a business environment where companies focus to get a sustainable competitive advantage

Salience games : private politics when public attention is limited

We develop a theoretical model in which an industry and NGO play salience games - they act strategically to influence public attention to social impacts in the sector. Salience stimulates extra donations for the NGO, and thus firms have incentives to hide the damage they do to avoid public attention. How can an NGO design its mission (how to divide income between campaigning and other projects, and what sorts of campaigns to run) to thrive in such a setting? We show that when public attention is scarce, a greater campaign orientation induces industry to invest in greater obfuscation, starving the NGO of funds. The NGO in turn strategically biases its mission away from campaigns, and in favor of sector-wide versus firm-specific campaigns, but not by as much as a welfare-motivated planner would want. When public attention is avoided by a mixture of substantive and symbolic action, we show that a greater weight on the former induces the NGO to become more campaign-oriented, with social damage lower

Team-taught versus individually taught undergraduate education: A qualitative study of student experiences and preferences

Team teaching is becoming more common in undergraduate programmes of study although the relative merits to the more traditional individually taught courses have not been determined for best practice. For this study, 15 final year undergraduate students were interviewed to gain insight into their learning experiences. A thematic analysis of the interview data identified the perceived advantages and disadvantages of each mode of teaching. The advantages of individually taught courses included: Consistency of content delivery and advice, Familiarity with the lecturer’s teaching style and better Continuity of the subject content. The disadvantage of individually taught modules included Missing knowledge, compared to a team approach. Advantages of team taught modules included: Greater insight into a topic delivered by multiple team members. Disadvantages included: Content overlap, Conflicting messages relating to assessment, team members not taking Ownership of their roles and responsibilities and a belief that overall Team failure is worse than individual failure to deliver a module well. The results revealed that individually taught modules were generally preferred to team taught modules. A set of best practice recommendations are proposed to address the challenges when delivering team-taught teaching and become more student focused