Business environments are described or analysed in various ways based on disparate important dimensions. However, the concept of turbulence is ambiguous. This confusion touches on the varying orientations in studying organisational environments and the diverse methods that are used to measure it. Environmental turbulence underscores the extent of change and degree of complexity in a business environment. Changes in technology, statutory regulations, or environmental factors are some of the examples that constitute environmental turbulence. Therefore, a turbulent environment is dynamic, expanding, unpredictable, and fluctuating. In addition, such an environment displays high levels of interconnectedness with the business. Turbulence is a complex interaction of several dimensions that are related to change where some elements dominate others or overlap each other at times. The figure below shows the configuration of the main dimensions of environmental turbulence. 1. Dynamism If the components of the tasks of the environment are highly variable, the business needs Continue reading
Strategic Management Concepts
The Relationship between Sustainability and Innovation
Advancement in technology and the changing lifestyles of people requires flexibility and adaptation for business to survive. Technology has affected the way business is conducted around the globe. Opportunities present are friendly to innovative people who are able to come up with different strategies to solve problems that face human beings. Innovation and sustainability have become pertinent in business’ success. Concept of Sustainability Sustainability is a term used in reference to the need to conserve natural environments. It therefore implies that all things that are important to people’s lives depend on the environment. People thrive and survive because of their environment, which allows them to gain access to water and other important resources that are pertinent to their general life ad health. Therefore, ensuring that these environments are conserved should be their obligation. Businesses and individuals need to take the initiative of ensuring that the surrounding environment is protected from bad Continue reading
Mergers and Acquisitions (M&A) – Definition, Types, and Process
Mergers and Acquisitions (M&A) are increasingly becoming a novel approach for companies to wade through the competitive pressures of today’s globalized society. The increase of mega-mergers in today’s corporate world demonstrates the entrenchment of such transactions in modern business practices. Definitions of Mergers and Acquisitions “One plus one equals three”. This statement defines the main logic that informs merger and acquisition transactions. This logic stems from the fact that most companies aim to create a bigger shareholder value than the sum of the shareholder value that would ordinarily be realized if two corporate entities merge. The reasoning behind merger and acquisition transactions therefore stems from the fact that there is a greater value when two companies work together, as opposed to two companies working in isolation. Mergers and Acquisitions (M&A) are therefore joint activities where the activities of two or more companies merge to create one common purpose for both Continue reading
Case Study: The Daimler Chrysler Failed Merger
In 1999, the Daimler Benz corporation of Germany merged with the Chrysler Corporation. In merging, the two companies aimed to create a company with a global presence and to bring the strengths that each company had to the global automobiles market. At first sight, the companies appeared to be equal partners in the merger. The companies at the time of the merger were almost equal in size. In addition, the companies appeared ideal for a merger because each had specific strengths which could be complemented by the other. Chrysler, founded and having its main operations in the US, was a company that emphasized innovation and flexibility while its counterpart, Daimler Benz, was a company characterized by structured, hierarchical management and German engineering excellence. These apparent equal partners were thus ideal for a mutually beneficial merger. In addition, the two companies were among the market leaders in their areas of specialization, and their Continue reading
Cultural Integration in Mergers and Acquisitions
First, it is necessary to understand why the field of cross-cultural differences is vital to business interactions. In many situations, it is beneficial for companies to merge. Some businesses are failing to perform on their own, but still possess resources that may be valuable for businesses in the same sphere. Other companies aim to expand to increase their growth and support the rising demand for their services. Overall, joint ventures and alliances happen to raise the value of the merging entities, whether this value is connected to the brands presence, technologies and other resources or economies’ scaling. Cross-border acquisition and merger can be motivated by these factors as well – companies often want to enter new markets, for which international collaboration is essential. Its unique challenge, however, is that the market the foreign company is entering is completely new to it in many aspects. Merger and acquisition (M&A) are processes Continue reading
Cooper’s Stage Gate Model in Product Development
Cooper’s Stage Gate process focuses on innovations during project management/product development. The stage gate process, a notable project management technique pioneered by Dr. Robert G. Cooper in the early ’80s, systematically breaks down a project into distinct, manageable stages, punctuated by decision points known as gates. At these gates, the project’s progress is critically evaluated against predefined benchmarks, determining whether the project should progress, be adjusted, or discontinued. Entrepreneurs use a set of approaches and tools to assess the viability and potential of ideas and profit from them by developing and launching products. Cooper’s stage gate process model is one such approach that is key to any product or service in the commercial or non-commercial sector. Cooper’s stage gate process model is critical to the processes and performance of an organization as it reduces production errors and therefore saves the company from losses. This technique divides a project into different Continue reading