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Success Through Consistent Strategy: How Does Scania’s Management Control Matter?

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Strategy, Control and Competitive Advantage

Part of the book series: Management for Professionals ((MANAGPROF))

Abstract

For a long time, Scania has remained remarkably consistent in its competitive positioning. Its origins date back to the early 1900s, and since 1924 it has produced trucks and busses in Södertälje, a town close to Stockholm. From 1969 until 1995 it formed part of Saab-Scania, which at that time was a major industrial group also producing passenger cars and aircraft, but Scania retained its strong identity. Business units within the group deployed very different management control practices. Hence, Saab-Scania was acting as a conglomerate, in spite of operating in industries where synergies would seem possible. Throughout this period, Scania was the most profitable part of the group. After more than a quarter-century it again became a separate company in 1995.

Much of this chapter is based on a licentiate thesis by Annette Anjou (2008), whose contribution is gratefully acknowledged.

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Notes

  1. 1.

    Anjou (2008), following the SiSK framework (i.e. Nilsson and Rapp 2005), used the terms “monetary” and “non-monetary” information. This has been retained below where explicit reference is made to her study. Otherwise, the broader terms “financial” and “non-financial” information were preferred.

  2. 2.

    Quotes from Anjou were translated by me and then reviewed by her. My interviews with controllers were also conducted in Swedish, and one controller then approved my translations.

  3. 3.

    The persons interviewed used the Swedish term “ekonom”.

  4. 4.

    Both Anjou’s study and my interviews focus “the industrial side,” so the present chapter can only provide limited information on “the commercial side.”

  5. 5.

    The time a truck can be used and is not “down” for repairs and service. See Anjou (2008, p. 91).

  6. 6.

    According to my interviews, ‘all components’ may be a slight exaggeration. There is however a very high degree of component commonality, as components are optimised for the long-haulage segment.

  7. 7.

    This should be compared with Chap. 7 in this book.

References

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Correspondence to Nils-Göran Olve .

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Olve, NG. (2014). Success Through Consistent Strategy: How Does Scania’s Management Control Matter?. In: Jannesson, E., Nilsson, F., Rapp, B. (eds) Strategy, Control and Competitive Advantage. Management for Professionals. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39134-7_4

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