Strategic Management

Topics: Strategic management, Management, Strategic planning Pages: 5 (1574 words) Published: June 8, 2014
EXECUTIVE SUMMARY
The essay provides a brief introduction to rapid, volatile and discontinuous change. It will elaborate that how these changes influence the organizational strategic management process and also incorporates some dissension related to it, which includes strategic analysis, strategic implementation and strategic evaluation. The top-managers in company should inspect the external environment to know their opportunities and threats. Any change that occurs in external environment will affect the strategy selected. Hence, it is important for an organization to use vigorous strategies to conquer these changes. INTRODUCTION

The report describes the concept of rapid, volatile and discontinuous change in the strategic management and the impact of external environment on strategic management process. Firstly, the report will provide conceptual knowledge of the external environment and all the three changes and their characteristics. Furthermore, PESTEL model is used to interrogate the external analysis and Porter’s 5 fo rces model with an additional government force is used to analyze its impact on strategic management. The change is inevitable whether it is rapid, volatile or discontinuous and the top-level managers have to adopt several measures to face them. They should set some dynamic strategies in order to change their mission when these changes occur in environment. It is CEO’s responsibility to prepare some plan of action against discontinuous change and there are many evidences for CEO’s, who are not well appreciated in facing such changes. DRIVING FORCES OF CHANGE:-

The change in the business environment is inevitable. Change can be a rapid change which occurs frequently such as technological change, or a volatile change that can be small or massive, or a discontinuous change which can occur anytime, anyhow or anywhere or is quite unpredicted (Handy, 1990). There are several forces that drive these changes to occur in the business environment. Most companies compete in external environment and are influenced by these changes. Therefore, they perform SWOT analysis to know their potentials; strength, weakness opportunities and threats. However, no matter whatever the change is, it is always unsure and unreliable in strategic management (Taneja et. al, 2013). These changes will also bring effect in competition patterns in various industries. Hence, there is always a need of dynamic strategy that can be flexible in order to face new environment. As the industry competition is rigorous and with respect to the global economy, companies are also planning their strategies, not only to fight against the porter’s five forces model along with the sixth force i.e. government strict rules and regulations but also facing foreign competitors. Such competency precedes a company to be more flexible in order to execute their strategy successfully. On the other hand, rapid increase in technology is one kind of discontinuous change. Nowadays, people are relying on technological innovation as it is increasing their living standards (Mackenzie and Wajcman, 1999). Hence, technology can evade company’s competitive advantage in today’s environment. For example, Samsung and apple are leading company as they produce their products with latest technology whereas Nokia and Sony are lagging behind with this drawback. Hence, changes are somewhere also stimulating companies to grow up and become more competitive. IMPACT ON ORGANIZATION

Strategic Management process is a process that involves three steps strategic analysis, strategic implementation and strategic evaluation (MacMillan and Tampoe, 2000). It also determines the company’s mission and objectives and also identifies the strategy selection. The company has to plan a suitable strategy that can be bear and sustain when there is change in external environment. Strategic analysis involves assessment of internal as well as external analysis. On completion of external analysis,...
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