1. Ryan Gaddy, Aguinaldo Sebastiao, Paulo Santos, Carlos Becerra
Foundations of Strategy:
Chapter 10
Current trends in Strategic Management
Company: Apple Inc,
Ryan Gaddy, Aguinaldo Sebastiao, Paulo Santos, Carlos Becerra

2. Current Trends in Strategic Management
The 21st century business environment is characterized by increasing complexity and increasing volatility
Major events that shaped the business environment:
The terrorist attacks of 9/11
2008 global financial crises
The Arab spring in 2011
Russia’s annexation of Crimea in 2014
Increased incidence of natural disasters
These events caused organizations to reorient their strategies.
These events

3. Major Characteristics of Today’s Business Environment
The major characteristics of today’s business environment are: Turbulence, (increased) Competition, Technology, and Social pressures and the crisis of capitalism
1-Turbulence: Due major events the focus of firms shift to “Black Swan Events”
Black Swan Events: Events that are rare, have a major impact and are unpredicted, despite the fact that they are rationalized retrospectively.
The question is whether recent black Swan events made the business environment more crisis-prone.
The shift in global balance of economic power decreased the ability of the leading industrial nations to control disruptive forces, and increased the likelihood of black swan events to take place. - (BRICS)

4. Major Characteristics of Today’s Business Environment
2- Increased Competition
The entrance of emerging-market countries companies to the global market
Several companies that were only manufacturers are now selling products under their own brand.

5. Major Characteristics of Today’s Business Environment
3-Technology
The potential for digital technologies to undermine established positions of competitive advantage and redraw industries barriers is increasing. “The Pace of creative destruction is accelerating”
When Apple developed the iPad the demand for PC declined significantly
Several PC companies started producing tables
The Economist Magazine predicted a Third industrial Revolution
Caused by advancement in 3D printing , robotics, and automated logistics systems
Shift in manufacture from low-wage to technology-rich countries

6. Major Characteristics of Today’s Business Environment
4- Social pressures and the crisis of capitalism
Companies to survive and prosper must adapt to the values and expectations of society- Legitimacy
2008 financial crisis caused several companies to lose legitimacy
When the values and attitudes of society changes companies must also change their strategy
Today there is a growing demand for fairness, ethics and sustainability
increase in neo-Marxist, and anti-globalization movements
General disdain for business corporations and their leaders
Market Capitalism have also loss legitimacy because of:
Unequal distribution of income and wealth
The top 1 % of the population owns 42% of America's personal wealth

7. Major Characteristics of Today’s Business Environment
The decline of the US, Europe and Japan economies relative to China and other emerging markets has increased skepticism towards free market capitalism.
On the other hand State Capitalism has gained more attention (optimism) due to prominent growth of Chinese state-owned multinationals.

8. New Directions in Strategic Thinking
External factor
Economic factor
Social Factor
Political Factor
Technology factor
Competition factor
Exemple: Apple may be affected by the trade war between China and US. It will force Apple to rethink its directions.

9. How to create New Direction in Strategic Thinking
1- Reorienting Corporate Objectives
Doesn’t focus on:
The notion that company exist to enrich their shareholders
Adapting corporate goals to accommodate wider social and environmental responsibilities.
Focus on stock market valuation as priority
Focus on strategic factors that drive profits:
Operational efficiency
Customer satisfaction
Innovation and new product development
Ex: Apple CEO trillion $ mark“focus on its products, customers, and company values.”

10. 2. Seeking more Complex Sources of Competitive Advantage
To maintain both profitability and market share companies over many years have done:
Multiple layers of competitive advantage that include: cost efficiency, differentiation, innovation, responsiveness and global learning.
Exemple: Apple watch, iPhone, iPod, iTune and iPad...
3. Looking more Closely at Processes and Practices
Studying managerial practices in the detail can provide us a better view of the skills and abilities that managers at different levels draw on when engaged in strategy work.
Routines, conversations and interactions.
4. Managing Options
It is important for companies to keep their options open in order to embrace new opportunity to expand.

11. Understanding Strategic Fit

12. Complementarity Research

13. Complexity Theory Unpredictability Self-organization
Inertia, chaos, and evolutionary adaptation

14. The Contextuality of Linkages Within the Firm
Contextuality of activities
Contextuality of Interactions

15. Redesigning Organizations
Multidimensional structures
Making organizations informal, self-organizing, and permeable

16. Informal Organization
Apple example

17. Self-Organization Identify
A collective understanding of what is presumed core, distinctive and enduring about the character of an organization.
Information
Information and Communication networks support spontaneous patterns of complex coordination with little or no hierarchical direction.
Relationship
The pathway to the intelligence of the system

18. Apple Self-Organization
Identity
Apple’s organizational identity is revolved around its product design. The identity was focusing on simplicity, elegance, and style for all ages.
Information
Apple’s self servicing account program designed for institutions and businesses that would like the convenience of repairing their own products.
Relationship
An opportunity for wealth creation that you will have a nice retirement if you can reach your own individual accomplishments.

19. Breaking Down Corporate Boundaries
In order to expand the range of capabilities that they can deploy, firms collaborate in order to access the capabilities of other firms.
Strategic Alliances have been placed to permit stable yet flexible patterns for integrating the capabilities of different firms while also sharing risks.
Apple
Apple and Salesforce are partnering to transform how businesses engage with customers by combining the worlds No. 1 CRM with the world’s most advanced mobile operating system for business. (iOS technologies like Siri Shortcuts, Face ID, Business Chat and more.

20. The Changing Role of Managers
Changing external conditions, new strategic priorities and different types of organization call for new approaches to management and leadership.
The era of reconstruction and shareholder focus is associated with “change masters”
Highly visible, individualistic and often hard driving management styles
Less emphasis on the role of executives as decision makers and more on their role in guiding organizational evolution.