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    Strategic Change, Execution Blunder (Part 1) – Introduction

    By Claus Schafhalter | September 23, 2011

    Crossroads

    Participating in or watching the stock market in 2011 can be nerve wrecking. Shares go up and down driven by macro-economic developments, recession fear, and relief that everything will be fine. There are a couple of well known companies though that fall much more than the market. In this loose series I want to discuss three of them, all at one time market leaders in their segment, and all lost 50% or more of their share value after announcing strategic changes.

    These are my candidates:

    In all 3 cases I do have strong opinions about the merits of their announced strategies. But let’s be clear about it, without insider information and intelligence about market drivers and competition I am not in a position to evaluate their strategies 100%. However, I’ll take the freedom to ask questions regarding their respective strategies, questions that the executives hopefully answered before they announced their new directions.

    Still, this series will concentrate on the way these companies implemented their strategic change. After all investors punished these companies by devaluing them 50% or more after they announced their strategic change. Clearly, something went wrong here. I will try to explain from a strategic change management perspective and will show how change for the better could have been approached differently.

    Claus Schafhalter, Sunogos Inc.

     

    Find the other installments of this series:

    Strategic Change, Execution Blunder:

    (1) Part 1 – Introduction
    (2) Part 2 – What Happened At Nokia

    (3) Part 3 – Netflix’ Troubles

    (4) Part 4 – Netflix Commits A U-Turn

    (5) Part 5 – Does HP Know What It Wants To Be?

    Topics: Change Management, Strategic Change, Strategic Execution | Comments Off on Strategic Change, Execution Blunder (Part 1) – Introduction

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