Strategy is the choice of direction and scope that a firm takes on a long term and involves the configuration of the firm status with a view to enjoy the advantages that come with the changes; however this requires the changing of the present environment in order to fit the needs of the new environment (Wilson, 2002).
Types of strategic changes
Converging (fine tuning): this type of change involves trying to enhance the status of a situation; it is mainly done at departmental level and involves reorganization in order to ensure that the resources available and an introduced process fit each other (Lawler, 2004).
Converging (increment adaptation): The changes done are small; they aim at adjusting the organization to small changes in a business environment (Lawler, 2004). The changes are done in bits and the process is therefore slow.
Discontinuous/ frame-breaking: the changes are major and heavy in that they take time to plan and for full implementation to be realized, they take over 18-24 months. Examples of frame-breaking changes include changes in power shift, workflow procedures, and a complete reorganization of a firm. The changes are either modular or corporate transformations (French & Bell, 2008). They are the major changes; modular transformation involves reorganizing several departments, or downsizing. Corporate transformation is also major and affects every department in the organization (French & Bell, 2008).
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Types of strategic changes
- Strategic planning
- Globalization
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text explores the strategic choices companies make in response to globalization, focusing on downsizing and its implications for workers and daily life in developed nations. It examines different types of strategic change, the importance of strategic planning, and the impact of globalization on organizational strategies and worker experiences.
- Types of strategic change (converging, discontinuous)
- The role of strategic planning in organizational change
- The impact of globalization on organizational strategies
- The implications of downsizing for workers and daily life
- Challenges and risks associated with strategic change
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory section sets the stage by defining strategy as the long-term direction and scope a firm chooses, emphasizing the necessity of adapting to environmental changes for competitive advantage. It highlights the crucial role of strategic change in achieving higher performance and increased business opportunities, contrasting those companies that adapt to those that fail to evolve. The introduction hints at the inherent risks and complexities involved in undertaking strategic change.
Types of strategic changes: This chapter categorizes strategic changes into converging (fine-tuning and incremental adaptation) and discontinuous/frame-breaking changes. Converging changes are smaller, incremental adjustments, while frame-breaking changes are major, often involving downsizing or complete organizational transformations. The chapter contrasts the speed, scope, and impact of these different change types, highlighting the potential benefits and risks associated with each. The text emphasizes the long-term effects of strategic changes on an organization's performance, structure, resources, and competitive position.
Strategic planning: This section underscores the vital importance of strategic planning, emphasizing that careful planning, even if the resulting plan isn't perfectly executed, is crucial for identifying potential challenges and optimizing strategies. The chapter links effective strategic planning to rational decision-making and understanding the organization's business nature, direction, and value system. It highlights common causes of strategic planning failure, such as poor execution and a lack of adaptability.
Globalization: This chapter focuses on the profound impact of globalization on organizational operations. It emphasizes how globalization has created new markets, opportunities, competition, and revenue streams, forcing organizations to adapt their strategies to meet stakeholder needs in a rapidly changing environment. The discussion specifically mentions the considerable impact on workers due to the resulting organizational changes brought about by globalization and the need for organizations to find ways to adapt to the pressures that globalization creates.
Schlüsselwörter (Keywords)
Strategic change, organizational change, globalization, downsizing, competitive advantage, strategic planning, organizational structure, worker implications, converging changes, discontinuous changes, emergent change, strategic drift, strategic inertia.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this text?
This text explores the strategic choices companies make in response to globalization, focusing on downsizing and its implications for workers and daily life in developed nations. It examines different types of strategic change, the importance of strategic planning, and the impact of globalization on organizational strategies and worker experiences.
What types of strategic changes are discussed?
The text categorizes strategic changes into two main types: converging changes (fine-tuning and incremental adaptation) and discontinuous/frame-breaking changes (major changes often involving downsizing or complete organizational transformations). The differences in speed, scope, and impact of these change types are analyzed, along with their associated benefits and risks.
What is the role of strategic planning in organizational change?
The text highlights the crucial role of strategic planning, even if the resulting plan isn't perfectly executed. Effective strategic planning is linked to rational decision-making and understanding the organization's nature, direction, and value system. Common causes of strategic planning failure, such as poor execution and lack of adaptability, are also discussed.
How does globalization impact organizational strategies?
The text emphasizes the profound impact of globalization, creating new markets, opportunities, competition, and revenue streams. Organizations are forced to adapt their strategies to meet stakeholder needs in a rapidly changing global environment. The considerable impact on workers due to organizational changes resulting from globalization is specifically addressed.
What are the key implications of downsizing for workers and daily life?
The text focuses on the implications of downsizing as a response to globalization, examining its effects on workers and daily life in developed nations. This includes the social and economic consequences for individuals and communities affected by job losses and organizational restructuring.
What are the key themes explored in this text?
Key themes include various types of strategic change (converging and discontinuous), the importance of strategic planning in navigating organizational change, the significant impact of globalization on organizational strategies and worker experiences, the implications of downsizing, and the challenges and risks associated with strategic change.
What are the key words associated with this text?
Key words include: Strategic change, organizational change, globalization, downsizing, competitive advantage, strategic planning, organizational structure, worker implications, converging changes, discontinuous changes, emergent change, strategic drift, and strategic inertia.
What is covered in the introduction?
The introduction defines strategy, emphasizes the necessity of adapting to environmental changes for competitive advantage, highlights the crucial role of strategic change in achieving higher performance, and hints at the inherent risks and complexities involved in undertaking strategic change.
What is the content of the chapter on "Types of strategic changes"?
This chapter details converging (incremental) and discontinuous (frame-breaking) strategic changes, contrasting their speed, scope, and impact. It emphasizes the long-term effects of strategic changes on an organization's performance, structure, resources, and competitive position.
What is the content of the chapter on "Strategic planning"?
This section stresses the vital importance of strategic planning for identifying potential challenges and optimizing strategies. It connects effective strategic planning to rational decision-making and understanding the organization's business nature, and highlights common causes of strategic planning failure.
What is the content of the chapter on "Globalization"?
This chapter focuses on globalization's profound impact on organizational operations, highlighting the creation of new markets, opportunities, and competition. It discusses the need for organizations to adapt their strategies to meet stakeholder needs in a rapidly changing global environment and the significant impact on workers.
- Quote paper
- Billy George (Author), 2012, International business strategy, Munich, GRIN Verlag, https://www.grin.com/document/270201