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cost leadership and differentiation

Miles and Snow’s presented their strategic typology framework in their 1978 work, Organization Strategy, Structure, and Process. Miles and Snow examined existing literature and studies in four industries: college textbook publishing, electronics, food processing, and health care to develop the framework. Their framework applies to business-level strategy, which focuses on how an organization compete within a market, and has two essential components, the adaptive cycle and the typologies.

Adaptive Cycle

            Miles and Snow expanded previous theories of strategic-choice approach in organizational study with the introduction of the adaptive cycle. According their work, the adaptive cycle incorporates both the idea that the external environment and choices made by upper-level management impacts an organizations structure and processes (Miles, Snow, Meyer, & Coleman, 1978). The adaptive cycle illustrates the dynamic process of organizations adapting their internal processes to cope with environmental opportunities or risks. Miles et al. (1978) categorized the many choices made by management into three expansive problems: the entrepreneurial problem, engineering problem, and the administrative problem.