3.10 Managing strategic change

Question 1

Incremental change

Answer 1

Gradual or small-scale adjustments made to existing processes, products or strategies within
a business, often aimed at improvement without fundamentally altering the status quo.

Question 2

Disruptive change

Answer 2

Radical or transformative shifts that significantly alter industry dynamics, business models or
market structures, often leading to the displacement of established players and the
emergence of new ones.

Question 3

Restructuring

Answer 3

A strategic reorganisation of an organisation’s structure, operations or resources, often
involving changes to departments, roles, processes or hierarchies to improve efficiency or
adapt to new challenges.

Question 4

Delayering

Answer 4

The process of reducing the number of hierarchical levels or management layers

Question 5

Organic structure

Answer 5

An organisational design characterised by decentralised decision-making, flexible roles and
responsibilities, and fluid communication channels.

Question 6

Mechanistic structure

Answer 6

An organisational design characterised by centralised decision-making, clear hierarchies,
formalised roles and procedures, and standardised processes, often found in larger or more
traditional organizations.

Question 7

Organisational culture

Answer 7

The shared values, beliefs, norms and behaviors that define the identity and personality of a
business, shaping its attitudes, actions and interactions.

Question 8

Planned strategy

Answer 8

A deliberate and systematic approach to strategic planning and decision-making, involving
formal processes, analysis and goal setting to guide future actions and resource allocation.

Question 9

Emergent strategy

Answer 9

A strategy that evolves over time in response to changing internal and external conditions.

Question 10

Strategic drift

Answer 10

The divergence of business’s strategy to the external environment. It occurs when a business
fails to adapt its strategy in response to changes in its external environment.

Question 11

Contingency planning

Answer 11

The process of preparing for and managing unexpected events, crises or uncertainties that
may impact the operations or performance of a business, involving risk assessment,
mitigation strategies and response plans.

Question 12

Crisis management

Answer 12

The coordinated process of identifying, managing and resolving crises or emergencies that
threaten the reputation, operations or viability of a business, involving crisis communication,
decision-making and recovery efforts.