Implanting Strategic Management by H. Igor Ansoff & Daniel Kipley & A. O. Lewis & Roxanne Helm-Stevens & Rick Ansoff

Author:H. Igor Ansoff & Daniel Kipley & A. O. Lewis & Roxanne Helm-Stevens & Rick Ansoff
Language: eng
Format: epub
ISBN: 9783319995991
Publisher: Springer International Publishing

Elements of the Legitimacy Strategy

The moment that management departs from insistence on exclusive focus on profitability and an uncompromising position against all constraints, it is no longer clear what should be the preferred objectives nor what the rules of the game (constraints and enablement’s) are under which the firm can best attain them, nor what should be the process by which the firm should seek to legitimize the preferred objectives and rules.

It should be recognized that management has a limited influence over the final choice of objectives and the rules of the game. These are determined through a political process in which representatives of different ideologies negotiate, bargain, and use other available means of influence to make their respective viewpoints prevail. Thus, the analysis of the legitimacy strategy for the firm must bring together three key ‘ingredients’: (1) an analysis of the objectives; (2) an analysis of constraints; and (3) an analysis of the power field within which the firm must act.

These ingredients can be brought together to determine the preferred objectives and rules of the game (we shall call the combination the preferred raison d’etre ), as well as the probable rules and objectives which will be the likely outcome of the political process after the firm has exerted its best efforts to make its viewpoint prevail.

In bargaining processes, which involve mutual give-and-take, it is inadvisable to announce the preferred position, unless its proponent has decisive power for making it accepted. Therefore, the firm further needs to formulate a bargaining strategy which also specifies the way it discloses its intentions, the types of action to be taken, the timing, and the coalition to be sought.

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