Chapter 1

Coalignment Model Coalignment Environment Events Firm Performance Strategy Choice Structure Coalignment

Coalignment Model – Environment Events Strategy Choice Firm Structure Performance Environment Events Major forces driving change in the remote and immediate environments of the organization. These forces, often referred to as trends, create opportunities and pose threats to the firm. They shape and force change in both predictable and unpredictable patterns.

Coalignment Model – Strategy Choice The choice of competitive methods used by the firm to take advantage of the threats and opportunities in the business environment. These methods should provide the firm with sustainable competitive Core Competencies. Environment Events Firm Structure Performance Strategy Choice

Coalignment Model – Firm Structure The effective and efficient allocation of the firm’s resources to the successful execution of the firm’s competitive methods. Environment Events Strategy Choice Firm Performance Structure

Coalignment Model – Firm Performance Environment Events Strategy Choice Firm Structure Performance Cash Flow per share of equity Aggregate value of competitive methods EPS, ROA, ROI Customer service

The Product Service Continuum Low High Ritz Carlton Econo Lodge Hotel Five Star Restaurant Red Lobster McDonald’s Vending Machine Travel Agency Product Level Service