Strategic Drift Flashcards
1
Q
What is strategic drift?
A
When the strategy of a business is no longer relevant to the external environment facing it
2
Q
Why does strategic drift take place?
A
- Business fails to adapt to a changing external environment
- What worked before doesn’t work now
- Senior management deny there is a problem
3
Q
What is an example of a firm that faced strategic drift?
A
- MySpace: was once the leading social media platform but failed to adapt to changing social trends and lost leadership to Facebook
4
Q
Why does the external environment change?
A
Political Economic Social Technological Legal Environmental
