The organizational change is an integral part of every company nowadays. All organizations should be able to adapt to the rapidly changing environment. Globalization, technologies, pluralism, and multiculturalism are factors that predetermine the need to adapt to alternations to remain competitive in the sphere constantly. Managers may utilize a complexity theory to implement organizational change. According to this theory, the organizations are characterized by non-linear relationships and lack of order. Managers should identify the connection between variables to conduct an efficient change. Still, many employees resist to changes. Scientists and researchers have made many attempts to comprehend the way organizations function and develop. Various approaches to their understanding have been used. For instance, the organization was often compared to the machine. However, this seeing of organization is no longer relevant due to the development of other theories. The complexity theory presupposes that organizations function based on instability, entropy, nonlinearity, and Continue reading
Strategic Management Basics
The Role of Strategic Leadership in Change Management
Strategic Leadership The term ‘strategy’ is very common in the business world today. However, the word ‘strategy’ has been broadly used that it has lost clear meaning. Despite the significance of strategy, there is astoundingly little consensus on what it means. Nonetheless, the fact is that behind every success, there must be a strategy. A strategy is an ambiguous term normally linked to long-term planning, prearranged goals, and a preferred system of creating a balance between the organizational resources and externalities. The contemporary schools of thought in strategic management strongly suggest that strategy should be comprehended as the creation of the organization’s goals, which is realized through joint effort, regarded as a constant process, and distinctive strategic vision and core values are terms that are often used in strategic management. Strategic vision refers to the executive views on the long-term direction. On the other hand, core values are the principles and Continue reading
Analysis of Competitive Position Using Porter’s Five Forces Model
Michael Porter’s Five-Forces Model of competitive analysis is a widely used approach for developing strategies in many industries as the intensity of competition among firms varies widely across industries. According to Porter, the nature of competitiveness in an industry can be viewed as a composite of five forces: rivalry among competing firms, potential entry of new competitors, potential development of substitute products, bargaining power of suppliers and bargaining power of consumers. There are 3 steps to use Porter’s Five Forces Model can reveal whether competition in a given industry is such that the firm can make an acceptable profit. Firstly, identify key aspects or elements of each competitive force that impact the firm. Secondly, evaluate how strong and important each element is for the firm. Lastly, decide whether the collective strength of the elements is worth the firm entering or staying in the industry. Rivalry among the competing firms is Continue reading
The Growth of Strategic Planning
Many of today’s most successful business organizations continue to survive because many years ago they offered the right product at the right time; the same can be said for nonprofits and government organizations. Many critical decisions of the past were made without the benefit of strategic thinking or planning. Whether these decisions were based on wisdom or luck is not important. They resulted in momentum that has carried these organizations to where they are today. However, present day managers increasingly recognize that wisdom and intuition alone are not sufficient to guide the destinies of large organizations in today’s ever changing environment. These managers are turning to strategic planning. In earlier, less dynamic periods in our society, the planning system utilized by most organizations extrapolated current year sales and environmental trends for 5 and 10 years. Based on these, they made plant, product, and investment decisions. In most instances, the decisions Continue reading
Strategic Decisions for Sustainable Business
Strategic Management is a constant object of curiosity among psychologists and thinkers. On several occasions, senior managers are asked how they come up with strategic decisions. They have one pattern of making these crucial and company-light decisions. One would suppose these to be mathematical, based on rigid rules of logic or statistical treatments. But here’s the catch: The managers decisions were product of informal data gathering, intuition, innovation, and oral exchanges in 2-way communications. These managers have the feel of the whole situation besetting their companies and their impulse always has an accompanying relevance. Their minds transcend logical rules that are immutable and mechanical and perhaps by age and experience, they acquired an almost instantaneous and discrimination of what is effective and practical. They give a whole new meaning to the words feeling, judgment, common sense, proportion, balance, and appropriateness. They use these terms to effect viable actions that would Continue reading
Managing Environmental Uncertainties in Business
Recent years have had a distinctive progressive pace of development, and with such rates of creating innovations, environmental issues have been on the rise. Along with the rapid decrease in ecology quality, many regulations and policies for its preservation are created, which directly affect business enterprises. Therefore, an ability to quickly react to the uprising environmental issues and the potential to solve them with benefits for the company has become a driving factor in the success of corporations. Managers are one of the primary people in enterprises who become affected by environmental uncertainty, as they must be fast to respond to the issues, create new regulations and adjust to current events in no time. When talking about uncertainty, it is hard to collect sufficient information and plan strategies that are undoubtedly effective; therefore, managers face significant challenges while future planning is connected with environmental needs and changes. Each corporation chooses Continue reading