3.10.4 Problem with strategy and strategic drift Flashcards
What is the external environment?
Factors which infuence a business which the business cannot control
what is a planned strategy
a strategy that managers intend to implement using a carefully layed plan
what is an emergant strategy
an unplaned strategy that develops over time and is based on the believef that change should not be seen as a series of linear events
what is strategic drift?
Occours when a buisness responds too slowly to change
Strategic drift occurs when the strategy pursued by a business no longer fits with the environment around it
what is divorce of ownership
the so called divorce between ownership and control happens when the owners of a buisness do not control the day to day decisions made in the buisness
what is coporate governance
coporate governance is a set of systems rules principles and processes that ensure that an organisation is directed and controlled in the best interest of all its stakeholders
what is contingency planning
a plan for the unexpected
what is strategic evaluation
a way to determains the effectivness of a strategie
Features of a planned strategy
relativeley rigid
carefully laid plans to achieve the desired position, it assumes nothing will go wrong
features of an emergent strategy
achive result, not how you intended.
copes with change
result of acomidating chnage and reality
what actually happens
what are the difficulties of decision-making and implementing strategies
overall goals not sufficiently understood
lack of capability
huge staff turnover
unforeseen external events
benefits of strategic planning
clarify direction
provide a way to measure progress
motvates and guides people
what are the four stages of strategic drift
phase 1: incremental change
phase 2: strategic drift
phase 3: flux (try new things)
phase 4: transformational change/death
what is incremental change
small chnages over time
organisations remaning competitive and relevant in the market (changing with times)
