Strategic dissonance

Essay by d nelsonUniversity, Master'sA+, May 2004

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Strategic dissonance is what Praxim is facing. Their implied strategic intent has always been to build the best relationships of any PC supplier with corporate clients. They appear to do this better than their competitors do. However, they have also been happy to take profits off the top end of the consumer market. Now that profits are falling, and the consumer division is to blame, there is a conflict between their mission, and what actually needs to be done to survive let alone grow. CEO Jack Thompson has already made the decision to rethink the firm's strategic vision. His recruitment of Linda Marcus makes it plain that he is willing to significantly alter the goals of the consumer division, and drastically change its position within the company.

Just as all managers faced with strategic dissonance, Jack must emotionally detach himself from the old ways of doing things. He has done a good job of allowing debate on the topic among his senior staff, but it seems he still needs to convince himself that he is doing the right thing.

Just because the corporate market has been more important to Praxim in the past, does not mean that the consumer market cannot be just as important for the future.

The management team at Praxim has arrived at a decisive moment. Even though this area generates 20 percent of the company's sales, profit margins are terribly low in their consumer sales division. If they dispose of it, their profit margin may go up, but the loss of sales might still drive down their overall performance. The team, divided on how to resolve this issue, but a close assessment of the fundamental facts will give way a clearer picture.

The company is ready to make the drastic and radical changes Jack's new...