AMITY BUSINESS SCHOOL

Amity Business School

MBA Semester II
Business Environment and Strategic Analysis
Himanshu Mahobia

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What is Patching?
“Role and ability of corporate managers to
create value in management of multi-
business companies is called Patching”
- Kathleen Eisenhardt and Shona Brown

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What is Patching?
“Patching is the process by which corporate
executives routinely remap businesses to
match rapidly changing market
opportunities. It can be in the form of
adding, splitting, transferring, exiting or
combining chunks of businesses”
- Robinson, Pierce, Mittal

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 Three approaches to Strategy
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Position Resources Patching

Strategic Logic Establish Position Leverage Pursue
Resources Opportunities
Strategic Steps Identify attractive Establish Vision, Jump into
market, locate Build Resources, confusion, keep
defensible Leverage Across moving
position Markets
Strategic Where should we What should we How should we
Questions be? be? proceed?
Source of Unique Valuable Unique valuable Key processes,
Advantage position with inimitable simplicity
tightly integrated resources
system
Works Best in Slowly changing, Moderately Rapidly Changing,
well structured Changing, well Ambiguous
markets structured markets
markets
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 Three approaches to Strategy
AMITY BUSINESS SCHOOL

Position Resources Patching

Duration of Sustained Sustained Unpredictable

Advantage
Risk Too difficult to Too slow to build Too tentative in
alter position as new resources as executing
conditions change conditions change promising
opportunities
Performance Goal Profitability Long-term Growth
dominance

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 Strategy as Simple Rules
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• How to Rules

• Boundary Rules

• Priority Rules

• Timing Rules

• Exit Rules

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Assignments for All Students

Develop a Patching Strategy for LML group
to be successful

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THANK YOU

ANY QUESTIONS?