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The Strategy Formulation Mechanism

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Performance Management Systems

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

The strategy formulation mechanism aims at the development of generic, long-run, strategic plans specifying the strategic direction and scope, which will assure the organisation’s long-term survival. Strategy formulation is a key component in order to effectively translate shared organizational values into specific and customized strategies aimed at providing sustainable competitive advantage. This Chapter analyzes the relationships between strategy formulation and other PMS mechanisms. Moreover, it deals with specific issues in the strategy formulation process, such as strategic formulation tools and strategic change management. Furthermore, it discusses some recent trends in the strategic field, which are closely related to the design and use of the strategy formulation mechanism as well as the overall loose coupling PMS. Some remarks for future research avenues will be put forward in the last section of the Chapter.

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Notes

  1. 1.

    It is beyond the purpose of this manuscript to analyse in full depth the concept of CSR. The aim of this paragraph is to provide an overview of the Literature on CSR and discuss how prior research conceives CSR as a corporate strategy and its relationships with other corporate strategies.

  2. 2.

    According to Aguinis and Glavas (2012) stakeholder groups include “shareholders (David et al. 2007), consumers (Christmann and Taylor 2006; Sen and Bhattacharya 2001), the media (Davidson and Worrell 1988; Weaver et al. 1999a, b), the local community (Marquis et al. 2007), and interest groups (Greening and Grey 1994)” (p. 936).

  3. 3.

    Predictors of supervisors’ preference for CSR activities are values (Mudrack 2007), alignment between individual and organizational values (Bansal 2003; Bansal and Roth 2000), awarness of CSR guidelines (Weaver et al. 1999a), CSR training (Stevens et al. 2005) and attendance to CSR conferences (Johnson and Greening 1999; Weaver et al. 1999a, b).

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Authors and Affiliations

  1. Department of Economics and Management, University of Pavia, Pavia, Italy

    Chiara Demartini

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  1. Chiara Demartini
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Demartini, C. (2014). The Strategy Formulation Mechanism. In: Performance Management Systems. Contributions to Management Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36684-0_7

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