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Author: | Picken, J. Dess, G. |
Title: | Right strategy - wrong problem |
Journal: | Organizational Dynamics
1998 : SUMMER, VOL. 27:1, p. 35-50 |
Index terms: | STRATEGY MANAGEMENT FUTURE |
Language: | eng |
Abstract: | All managers develop what Peter Drucker calls "a theory of the business" -- a set of assumptions about how the company earns a profit in a competitive environment. Disaster lurks when the executive theme's theory of the business loses touch with reality. This is clearly what happened to Greyhound Lines in the early 1990s when a new executive team launched reservation and marketing programs modeled after the airlines. Executives at Raytheon were victims of an overdose of optimism when they built a new aircraft using untested composite materials. |
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