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Ecole Des Hautes Etudes Commerciales Affiliee a L'universite De Montreal

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Ecole Des Hautes Etudes Commerciales Affiliee a L'universite De Montreal ECOLE DES HAUTES ETUDES COMMERCIALES AFFILIEE A L'UNIVERSITE DE MONTREAL STRATEGIC ADAPTATION IN LOW GROWTH ENVIRONMENTS par William D. TAYLOR TOME I THESE PRESENTEE EN VUE DE L'OBTENTION DU GRADE DE PHILOSOPHIAE DOCTOR (Ph.D.) ACKNOWLEDGEMENTS Any success that a doctoral student enjoys is obviously the result of the contributions of many people. Firstly, I am grateful to the members of my doctoral committee at Ecole des Hautes Etude Commerciales--Jean Guy Desforges (Chairman), Jean Marie Toulouse , and Francine Bernard—who have provided moral support, advice, and encouragement throughout ail of my doctoral programme. To the outside member of my committee, Henry Mintzberg of McGill University, I am particularly indebted. There can be no doubt that, whatever the contribution this research makes to the study of organizational strategy, it is due to Henry Mintzberg who inspired me by his ideas, by his innovative ap- proach to the study of management, and by his never ending be- lief (I hope substantiated) in the potential of his students to become "organizational detectives". A special word of thanks is also extended to Ré jean Drolet my colleague at Bishop's University who assisted in the French summary included in this dissertation, and to the many individ- uals who provided information on the four organizations studied. Finally, I would like to express my love and appreciation to the two persons who have sacrificed the most so that I could complete this work. I am grateful to my daughter, Michelle, who cannot remember a period of her life when her father was flot working on some part of his doctoral programme, for her patience and help. The contribution of my wife, Ginette, to this under- taking cannot be measured. Not only has she sacrificed much so that I could complete my doctorate, but she has had to live every aspect of my programme including ail of the typing of both the rough and final drafts of this six hundred and fifty page dissertation. For her support, encouragement, and help I will •be eternally grateful. TABLE OF CONTENTS ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF EXHIBITS FRENCH SUMMARY Chapter INTRODUCTION 1 The Central Theme Of This Research The Specific Nature Of This Research Approach Used In This Research Contribution Of This Research Chapter Outline Summary II REVIEW OF LITE RATURE 12 Strategy and Organizational Theory Evolution Of The Strategy Concept Positions Of Various Strategy Writers Concerning Constraints Research On The Strategy Formation Process The Content Of Organizational Strategies Studies On Strategic Response To Second Order Environmental Change Constraints On Strategic Adaptation Suggested In The Literature Summary III METHODOLOGY 45 Problems Of Researching Organization Strategy Exploratory Research Research Design iv Chapter Specific Problems Of This Research Summary IV THE SHARED ENVIRONIAENT 69 Introduction and Purpose Demographics Of The English-Speaking Population Of The Eastern Townships The Eastern Townships Region The Quiet Revolution The General Environnent And The Anglo- phone Population Summary V BISHOP'S UNIVERSITY 116 Background Summary Of Strategic Decisions Identification Of Strategic Periods Description Of Strategic Periods Constraints On Strategic Adaptation Summary VI THE SHERBROOKE HOSPITAL 156 Background Summary Of Strategic Decisions Identification Of Strategic Periods Description Of Strategic Periods Constraints On Strategic Adaptation Summary VII THE SHERBROOKE RECORD 193 Background Summary Of Strategic Decisions Identification Of Strategic Periods Description Of Strategic Periods Constraints On Strategic Adaptation Summary VIII CKTS RADIO 238 Chapter Background Summary Of Strategic Decisions Identification Of Strategic Periods Description Of Strategic Periods Constraints On Strategic Adaptation Summary IX ENVI RONMENTAL CHANGE 268 Introduction Characteristics Of Environmental Change Impact Of The Quiet Revolution The Process Of Environmental Change Summary X STRATEGIC CHANGE 293 Introduction Unit Of Analysis Characteristics Of Strategic Change Constraints On Strategic Adaptation Environmental Opportunities The Management Of Strategic Exit Factors Contributing To Strategic Change Summary XI CONCLUSION 32 6 Introduction Changes In The Four Organizations Environmental Change Constraints On Strategic Adaptation Implications Of This Research For The Concept Of Organizational Strategy Implications Of This Research For Other Organizations Conclusion APPENDIX A INTERVIEWS CONDUCTED 346 vi APPENDIX B BISHOP ' S UNIVERSITY 349 APPENDIX C THE SHERBROOKE HOSPITAL 426 APPENDIX D TI-EE SIIERBROOKE RECORD 525 APPENDIX E CKTS RADIO 591 BIBLIOGRAPHY 645 vi i LIST OF FIGURES Figure 1 Research Model 56 2 English-Speaking Population Of The Eastern 72 Townships As A Percentage Of The Total Regional Population 3 Relative Size Of The English-Speaking 73 Population By County 4 Quebec's Share Of Canadian Strikes And 109 Lockouts and Mandays Lost, 1946-1976 5 Summary Of Strategic Decisions, Bishop's 117 University, 1946-1976 6 Actual Enrollments Versus Announced 126 Maximum Enrollments, Bishop's University, 1946-1976 7 Sources Of Bishop's University Operating 135 Revenue, 1948-1975 8 Strategic Change - 1957, Bishop's 147 University 9 Strategic Change - 1971, Bishop's 151 University 10 Summary Of Strategic Decisions, The 157 Sherbrooke Hospital, 1946-1976 11 Strategic Change - 1962, The Sherbrooke 181 Hospital 12 Strategic Change - 1971, The Sherbrooke 187 Hospital 13 Summary Of Strategic Decisions, The 195 Sherbrooke Record - 1946-1976 14 Strategic Change - 1951, The Sherbrooke 227 Record 15 Strategic Change - 1969, The Sherbrooke 232 Record viii Figure 16 Summary Of Strategic Decisions, CKTS Radio 240 17 Strategic Change - 1966, CKTS Radio 261 18 Strategic Change - 1975, CKTS Radio 264 Appendix B - Bishop's University B1 Programme Strategies 351 - B2 Length Of Degrees Strategies 352 B3 Admission Requirements Strategies 354 B4 Maximum Enrollment Strategies 355 B5 Residence Strategies 357 B6 Recruitment Strategies 358 B7 Continuing Education Strategies 360 B8 Total Number Of Faculty 362 B9 Faculty Distribution By Area 363 B10 First Degree Of Faculty Members By 365 Country Bll Percentage Of Faculty Holding Earned 366 Doctorate B12 Anglican Clergy As A Percentage Of 367 Total Faculty 313 Balance Of Fixed Asset Account 374 B14 Capital Investment Strategies 375 B15 Cumulative Membership Of The Executive 378 Committee B16 Decision Making Strategies 384 317 Funds Received From The Quebec Government 387 B18 Government Financing Strategies 397 B19 Government Relations Strategies 406 Figure B20 Anglophone Community Relations Strategies 410 B21 Enrollment 413 B22 Number Of Degrees Awarded 415 B23 Degrees Awarded By Programme 416 Appendix C - The Sherbrooke Hospital Cl Services Strategies 434 C2 Outpatient Activity 435 C3 Outpatient Service Strategies 439 C4 Number Of Doctors On Staff 440 C5 Doctor Recruitment Strategies 446 06 Intern Strategies 451 07 Number Of Nursing Personnel 453 08 Nursing Personnel Strategies 459 C9 Undepreciated Fixed Asset Balance 469 010 Capital Investment Strategies 470 Cil Capital Investments Financed By 473 Government Funds C12 Capital Investment Financing Strategies 475 013 Total Revenues And Expenditures 476 014 Deficit As A Percentage Of Expenditures 477 015 Percentage Of Operating Revenue From The 482 Provincial Government 016 Operating Financing Strategies 486 017 Government Control Over Quebec Hospitals 491 018 Government Relations Strategies 496 019 University Of Sherbrooke Relations 499 Strategies Figure 020 Relations With Other Hospitals Strategies 511 021 Community Support Strategies 514 C22 Total Admissions 515 023 Occupancy Rate 516 024 Total Operations 518 C25 Sherbrooke Residents/Total Admissions 519 026 Hospital Clientele 521 027 Revenues From The Annual Campaign 523 Appendix D - The Sherbrooke Record Dl Commercial Printing Strategy 529 D2 Editorials On Local Issues 531 D3 Editorial And News Content Strategies 538 D4 Frequency Of Editor Turnover 541 D5 Editorial Staff Strategies 543 D6 Average Daily Size Of Paper 544 D7 Features Strategies 548 D8 Cumulative Number Of Towns With Carrier 548 Delivery D9 Home Delivery Strategies 551 D10 Home Delivery And Newstand Prices 552 Dll Annual Postal Subscription Price 553 D12 General Advertising Rates 555 D13 Classified Advertising Rates 556 D14 Advertising Content Strategies 558 D15 Production And Fixed Asset Strategies 564 D16 Management Control Strategies 571 xi Figure 1J17 Annual Postal Cost Of Mail Subscriptions 573 D18 Average Price Per Ton Of Newsprint At 574 New York City D19 Audited Paid Circulation 584 D20 Average Weekly Size 588 Appendix E - CKTS Radio El Product Strategies 592 E2 Broadcast Area Strategies 596 E3 C.B.C. Affiliation Strategies 603 E4 Percentage Programming In Various 608 Categories E5 Music Programming Strategies 611 E6 News And News Related Progranming 614 Strategies E7 Community Public Affairs And Educational 616 Programming Strategies E8 Religious Programming Strategies 618 E9 Sports And Variety Programming Strategies 621 El0 Advertising Rate Strategies 622 Ell Prime Time Strategies 624 E12 Sales Strategies 625 E13 Sales Personnel Strategies 628 E14 Capital Investment Strategies 632 E15 Personnel Strategies 635 E16 Administrative Strategies 637 El7 Anglophone Community Strategies 639 El8 Regulatory Agency Strategies 641 E19 Weekly Total Audience 643 xii LIST OF TABLES Table 1 Size Of The English-Speaking Population 73 By County, 1946-1976 2 Percentage
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