Lawrence and Lorsch Organisation Design
8 Industry Evolution and
Strategic Change
No company ever stops changing . . . Each new generation must meet changes—in the automotive market, in the general administration of the enterprise, and in the involvement of the corporation in a changing world. The work of creating goes on.
—ALFRED P. SLOAN JR., PRESIDENT OF GENERAL
MOTORS 1923–37, CHAIRMAN 1937–56
It is not the strongest of the species that survive, nor the most intelligent, but the one that is most responsive to change.
—CHARLES DARWIN
You keep same-ing when you ought to be changing.
—LEE HAZLEWOOD, THESE BOOTS ARE MADE FOR WALKING,
RECORDED BY NANCY SINATRA, 1966
O U T L I N E
◆ Introduction and Objectives
◆ The Industry Life Cycle
● Demand Growth
● Creation and Diff usion of Knowledge
● How General Is the Life-Cycle Pattern?
● Implications of the Life Cycle for Competition and
Strategy
◆ Managing Organizational Adaptation and
Strategic Change
● Why is Change so Diffi cult? The Sources of
Organizational Inertia
● Organizational Adaptation and Industry Evolution
● Coping with Technological Change
◆ Managing Strategic Change
● Dual Strategies and Organizational Ambidexterity
● Tools of Strategic Change Management
● Dynamic Capabilities
● Developing New Capabilities
● The Contribution of Knowledge Management and the Knowledge-Based View
◆ Summary
◆ Self-Study Questions
◆ Notes c08.indd 207 15/11/12 8:52 PM
208 PART III BUSINESS STRATEGY AND THE QUEST FOR COMPETITIVE ADVANTAGE
Introduction and Objectives
Everything is in a state of constant change—the business environment especially. One of the greatest challenges of strategic management is to ensure that the fi rm keeps pace with changes occurring within its environment.
Change in the industry environment is driven by the forces of technology, consumer needs, politics, economic development, and a host of other infl uences. In some industries, these forces for change combine to create massive, unpredictable
Strategic Change
No company ever stops changing . . . Each new generation must meet changes—in the automotive market, in the general administration of the enterprise, and in the involvement of the corporation in a changing world. The work of creating goes on.
—ALFRED P. SLOAN JR., PRESIDENT OF GENERAL
MOTORS 1923–37, CHAIRMAN 1937–56
It is not the strongest of the species that survive, nor the most intelligent, but the one that is most responsive to change.
—CHARLES DARWIN
You keep same-ing when you ought to be changing.
—LEE HAZLEWOOD, THESE BOOTS ARE MADE FOR WALKING,
RECORDED BY NANCY SINATRA, 1966
O U T L I N E
◆ Introduction and Objectives
◆ The Industry Life Cycle
● Demand Growth
● Creation and Diff usion of Knowledge
● How General Is the Life-Cycle Pattern?
● Implications of the Life Cycle for Competition and
Strategy
◆ Managing Organizational Adaptation and
Strategic Change
● Why is Change so Diffi cult? The Sources of
Organizational Inertia
● Organizational Adaptation and Industry Evolution
● Coping with Technological Change
◆ Managing Strategic Change
● Dual Strategies and Organizational Ambidexterity
● Tools of Strategic Change Management
● Dynamic Capabilities
● Developing New Capabilities
● The Contribution of Knowledge Management and the Knowledge-Based View
◆ Summary
◆ Self-Study Questions
◆ Notes c08.indd 207 15/11/12 8:52 PM
208 PART III BUSINESS STRATEGY AND THE QUEST FOR COMPETITIVE ADVANTAGE
Introduction and Objectives
Everything is in a state of constant change—the business environment especially. One of the greatest challenges of strategic management is to ensure that the fi rm keeps pace with changes occurring within its environment.
Change in the industry environment is driven by the forces of technology, consumer needs, politics, economic development, and a host of other infl uences. In some industries, these forces for change combine to create massive, unpredictable