Igor Ansoff: Firm

“The triplet of specifications - the product-market scope, the growth vector and the competitive advantage - describes the firm's product-market path in the external environment.”

Igor Ansoff

Source: Corporate Strategy, 1965, p. 110

“We shall approach practical objectives through a series of approximations. Keeping the maximization of the rate of return as the central theoretical objective, we shall develop a number of subsidiary objectives (which the economists call proxy variables) which contribute in different ways to improvement in the return and which are also measurable in business practice. A firm which meets high performance in most of its subsidiary objectives will substantially enhance its long-term rate of return. (The defect in our approach is that we cannot prove that the result will be a ‘‘maximum’’ possible overall return.) As will be seen, this road has its own obstacles: the difficulties of long term maximization are replaced by the problem of reconciling claims of conflicting objectives.”

Igor Ansoff

Source: Corporate Strategy, 1965, p. 47; cited in: Graham Kenny, (2012),"From the stakeholder viewpoint: designing measurable objectives", Journal of Business Strategy, Vol. 33 Iss: 6 pp. 40-46

Way , Business , Problem

“Ansoff (1965) gives only some indication of what he means by environment. This can be explained by Ansoff's classification of decisions into strategic. administrative and operating decisions. He (1965, p. 8) defines these types of decision as follows:
Strategic - to choose product-market mix
Administrative to structure the firm's resources for optimum performance
Operating - to optimize the realization of the profitability potential with the present strategy.”

Igor Ansoff

Göran Asplund (1975), Strategy formulation: an intervention study of a complex group decision process. p. 22

Optimism , Decision

“This theory maintains that the objectives of the firm should be derived by balancing the conflicting claims of the various 'stakeholders' in the firm: managers, workers, stockholders, suppliers, vendors. The firm has a responsibility to all of these and must configure its objectives so as to give each a measure of satisfaction. Profit which is a return on investment to the stockholder is one of such satisfactions, but does not receive special predominance in the objective structure”

Igor Ansoff

Source: Corporate Strategy, 1965, p. 34; Cited in: Russell L. Ackoff (1994), The Democratic Corporation. p. 37

“By searching out opportunities which match its strengths the firm can optimize the synergistic effects.”

Igor Ansoff

Source: Corporate Strategy, 1965, p. 91

Search , Optimism