Complexity theory is defined as a study of non-linear dynamic systems and a conceptual framework that resolves the unpredictable outcomes of industries and emerges some unique patterns. This system was first developed in the perspective of physical and biological science. However, the social, economic and ecological aspect of this theory was developed later and evolved dynamically overtime. A company utilizes this set of ideas from the study of different natural resources such as weather conditions, animal behavior and then defines the behavior of the organization through several mathematical expressions. There are three key theories related to complexity theory for organizational change management. These are: Chaos theory Dissipative structures Complex adaptive systems Due to the complexity involved in the organization, there are several moments when a random chaos can be created within that organization. The random situation can be created of normal equations which can be further explained with the help of Continue reading
Strategic Management Basics
Strategies for Stability
Stability strategy is a strategy in which the organization retains its present strategy at the corporate level and continues focusing on its present products and markets. The firm stays with its current business and product markets; maintains the existing level of effort; and is satisfied with incremental growth. It does not seek to invest in new factories and capital assets, gain market share, or invade new geographical territories. Organizations choose this strategy when the industry in which it operates or the state of the economy is in turmoil or when the industry faces slow or no growth prospects. They also choose this strategy when they go through a period of rapid expansion and need to consolidate their operations before going for another bout of expansion. Read More: Stability Strategy It’s not easy to identify organizations that are pursuing a stability strategy, if for no other reason than that few top Continue reading
External Prospects of Business Growth
The analysis of the internal perspective of the growth of the business reflects on the operations that the organization must undertake to stimulate productivity and the quality of employees. In addition to the internal factors that influence the organization, external factors affect the performance of the business. The external factors include political, economic, socio-cultural, technological, legal, and environmental issues. The political environment involves the political stability of the country in which the business is operating. In this case, the additional factors that the political factors would influence include the regulation policies formulated by the government. If the government formulates stern policies based on its doctoral nature, the business operations will suffer leading to poor performance and reduction in quality provision. On the other hand, if the government adopts democratic leadership, business issues will be considered during policy development leading to business growth in the whole industry. Economic factors are crucial Continue reading
Environmental Scanning – Meaning, Definition and Importance
Every organisation is responsible for the environment that it creates. The organisation’s operation and structure all directly affected by the environment. Organisation’s environment impacts on resources and opportunities that how they can be treated? It is primary objective of the organisation to take care of the company’s operations that how they are affecting the environment. For the successful growth and development of business it is important to develop such a strategies those can be assist operate the business operations. To understand the environmental scanning it is important to identify the business and how it can affect the environment business around. The definition of environmental scanning is “a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering”. Environment scanning is most commonly done on Continue reading
Strategic issues in Not-for-Profit (NFP) organizations
Not-for-Profit (NFP): An organization that provides some service or good with no intention of earning a profit. NFP includes Private nonprofit corporations (such as hospitals, institutes, private colleges, and organized charities) as well as Public governmental units/agencies (such as welfare departments, prisons, and state universities) Types of Not-for-Profit Organizations Importance of Revenue Source: NFPs are dependant on dues, assessments, or donations for their revenue sources. In NFP organizations there is likely to be a very different sort of relationship between the organizations providing and the person receiving the service. Because the recipient of the service typically does not pay the entire cost of the service, outside sponsors are required. The pattern of Influence on Strategic Decision Making: Pattern of influence is derived from its source of revenues. Those who fund the NFP are likely to have a significant influence on its operations The usefulness of Strategic Management and Techniques: some Continue reading
Understanding the Need and Importance of a Business Model
Business models became popular as a result of the internet boom that made many companies to begin relying on web-based models. Companies shifted from the traditional methods that were based on strategy and competence in an attempt to embrace the new trend. The new models came with a promise of substantial profits and efficiency. All the entrepreneurs who bought into the new idea ended up suffering huge loses because they did not implement the models in the right way. The concept of business models therefore did not perform well in the initial stages because many people did not actually understand the concept. The failure of these business models came as a result of misuse and distortion. Many entrepreneurs wasted their capital by investing in flawed models without careful consideration. The new concept of doing business using models is still very applicable in different types of business ventures. A business model should Continue reading