Academic journal article Journal of Management Research

A Brief Introduction to Ansoffian Theory and the Optimal Strategic Performance-Positioning Matrix on Small Business (OSPP)

Academic journal article Journal of Management Research

A Brief Introduction to Ansoffian Theory and the Optimal Strategic Performance-Positioning Matrix on Small Business (OSPP)

Article excerpt

Received: February 29, 2012 Accepted: January 24, 2013 Published: April 1, 2013

doi:10.5296/jmr.v5i2.3129 URL: http://dx.doi.org/10.5296/jmr.v5i2.3129

Abstract

The purpose of this paper is to briefly introduce the reader to Igor Ansoff and briefly examine the praxis of the components of Ansoff s Strategic Success Paradigm which when implemented have proven empirically to increase the firm's probability of strategic success.. We will look at efficacy of use of each of its components relative to the formulation and implementation of strategy in a for-profit Small sized enterprise, coalesced with other modeling techniques like Porter's, Strengths, Weaknesses, Opportunities, Threats (SWOT), Ansoff s strategic diagnosis with the Optimal Strategic Performance Position (OSPP) tool can provide management with an enriched capability to evaluate the firm's current and future performance position providing both a descriptive plan as well as a prescriptive diagnosis

Keywords: Ansoff, Strategy, Environmental Turbulence, Strategic Success Paradigm, Optimal Strategic Performance Position (OSPP) tool

Introduction

There is a recognized need to have a consistent and comprehensive framework to analyze a Small Business's (SB) strategic posture. Conduct a strategic gap analysis to identify where are company's shortfalls in capability can be important. Using the Optimal Strategic Performance Position (OSPP) tool in order to ascertain the competitive positioning of a small SB may assist in company ascertaining its gaps in capability. Using this tool and Ansoff s model may yield a descriptive and prescriptive plan that enables the managers of a small business to optimize the firm's performance.

Thus far, most research on Ansoff s approach to strategic positioning has been focused on large and medium sized organizations. This article will focus on a small business as defined by SBA. Even though this article will be conceptual, it will endeavor to present a real life, robust model combining Ansoff s strategic diagnosis with elements of the performance matrices to provide the SB management with an enhanced capability to evaluate a firm's current and future performance position.

The purpose of this paper is to examine Ansoff s theories and to briefly examine the Optimal Strategic Performance Position (OSPP) tool that may be used by management analyze its strategic posture. Discuss how Ansoff s contributions may enhance a businesses performance through the analysis of an industries environment turbulence level relative to its aggressiveness, responsiveness of its capability or Strategic Success Paradigm (SSP). The OSPP tool asserts that it allows a manager to assess their business and its different variables mathematically to match the current and future environment of its industry by testing the SSP factors.

H. Igor r Ansoff (1918-2002) was an applied mathematician and business manager. He is well known as the pioneer and has been declared by some to be the father of Strategic Management. Although Russian born, Ansoff studied at Brown University, where he received his Doctorate in applied mathematics; his mathematical expertise served as the basis for his analysis of strategic management techniques. Ansoff s career was quite varied ranging from academia to the US Navy and engineering departments at private sector firms (El-Kadi Consulting, n.d.) . In 1950 he worked at the prestigious think tank, RAND. While at RAND he focused on developing solutions for NATO's strategic challenges; this work became the underpinning for his theories on strategic management (The Economist, 2008). At the end of his career, Ansoff was a distinguished professor at United States International University (now Alliant International University) where his work in strategic management research is still continued

Ansoff introduced the concept of balancing "external characteristics of the product-market strategy and [creating] internal fit between strategy and business resources" (Ansoff, 2007). …

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