1. STRATEGIC DRIFT Berchot - Demarque - Doncieux - Durand - Piva

3. understandopportunities and problems

4. revealstrategic issues or challenges

5. But  itis not alwayseasy to change at the same time as the theenvironmentIntroduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva

6. 04/11/2010 STRATEGIC DRIFT Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva 3

8. Enlarges stores and geographical coverage;

9. but doesn’t deviate from the business modelBerchot - Demarque - Doncieux - Durand - Piva

10. 04/11/2010 5 STRATEGIC DRIFT Whycompaniesmeetincremental changes ? Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva

11. 04/11/2010 6 STRATEGIC DRIFT Strategy doesn’t fit with the environment Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Whilstanorganization’s strategycontinuestochangeincrementally, the environmentalchangeaccelerates Organizationdoesn’t change in linewith the environment Berchot - Demarque - Doncieux - Durand - Piva

13. Widerrangesofgoods (non-food)

14. DistributionlogisticsItsstrategywasnotkeeping pace with competitor’s changes Berchot - Demarque - Doncieux - Durand - Piva

16. Building on the familiar: managerstryto minimise the extenttowhitchthey are facedwithuncertaintybylookingforanswersthat are familiar(es: Sainsbury’s and customers’ loyalty)Berchot - Demarque - Doncieux - Durand - Piva

18. Relationships become shackles: The success of a company is based on an excellent relationship between customers, suppliers and employees.Berchot - Demarque - Doncieux - Durand - Piva

20. Icarus paradox Berchot - Demarque - Doncieux - Durand - Piva

22. Rivalryinside the company on the strategicturns(historicalreasons)

23. Consequences ?- Deteriotation of confidence inside the organization - Descrease of the value of the company - Difficulty in terms of HR - Loss of customersloyalty Berchot - Demarque - Doncieux - Durand - Piva

24. 04/11/2010 12 STRATEGIC DRIFT Examples Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Succession of CEO during the late 90’s, and somedecisionsled the company to financialunstability as well as marketsharelost. One strategicdecisionhad a terrible consequence : intermediaries are upset, and the brand isboycot. Berchot - Demarque - Doncieux - Durand - Piva

25. 04/11/2010 13 STRATEGIC DRIFT The end of the strategic drift Afterthisperiod of flux, 3 possibilities: Introduction IncrementalChange StrategicDrift Flux TransformationalChange or Death Conclusion Berchot - Demarque - Doncieux - Durand - Piva

27. 05/11/2010 15 Berchot - Demarque - Doncieux - Durand - Piva STRATEGIC DRIFT Example : the burden of history TransformationalChange or Death

29. Link between innovation and strategic drift. Anticipation of the strategic drift ? Our example: APPLE http://www.youtube.com/watch?v=ciUm-6gBC90 « The revolution has justbegun » Conclusion