Business Strategy: A Guide to Concepts and Models by Bengt Karlöf (auth.)

By Bengt Karlöf (auth.)

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Maximum efficiency in administering the status quo has given way to efficiency in developing one's area of responsibility. The business development concept has come to be a characteristic of offensive strategies designed to make the business grow rather than to conserve its resources. Both ingredients are of course necessary to successful business management. The newly discovered development aspect of business management sometimes tempts managers into flamboyancy and rash use of resources, which is not a good thing.

It may be a matter of how decisions are made, or how employees are rewarded and penalized. It considers communication within the organization, and tolerance of opposition. It may even include more peripheral phenomena such as organization of leisure activities, attitudes to the opposite sex or attitudes to the accumulation of status symbols like cars, car telephones and personal computers. Interest in the culture of organizations has increased sharply in recent years, partly because ofa growing realization of how much cultural phenomena influence the success and efficiency of an organization.

A process of change in the sequence described here will run more smoothly under strong central direction with adequate resources committed to the task. In this context, there are several important points to bear in mind: a. All decisions must be documented, accepted, agreed on and made known. b. Complete, open and accessible information must be given to as many people as possible. That includes employees, owners, customers and mass media. The information must be produced centrally, continuously and with the help of professional communicators.

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