Conflict

Strategic actions that are not coherent are either in conflict with one another or taken in pursuit of unrelated challenges.

Strategic actions that are not coherent are either in conflict with one another or taken in pursuit of unrelated challenges.  Consider Ford Motor Company.  When Jacques Nasser was the CEO of Ford Europe and vice president of Ford product development, he said, "Brand is the key to profits in the automobile industry."  

Moving into the corporate CEO spot in 1999, Nasser quickly acted to acquire Volvo, Jaguar, Land Rover, and Aston Martin. However, at the same time, the company's original guiding policy of "economies of scale" was fully alive and kicking.  A senior Ford executive said in 2000: "You cannot be competitive in the automobile industry unless you produce at least one million units per year on a platform."  Thus, the actions of buying Volvo and Jaguar were conjoined with actions designed to put both brands on a common platform.  Putting Jaguar and Volvo on the same platform dilutes the band equity of both marques and annoys the most passionate customers, dealers, and service shops.  Volvo buyers don't want a "safe Jaguar"; they want a car that is uniquely safe.  And Jaguar buyers want something more distinctive than a "sporty Volvo."  These two sets of concepts and actions were in conflict rather than being coherent.

ACTION POINT: Look for potential conflicts that actions may cause and avoid them.