Strategic Drift Flashcards
1
Q
When does strategic drift occur
A
When a businesses strategy is no longer appropriate for its business environment ( PESTLE)
2
Q
What is the axis of the graph
A
The amount of change & Time
3
Q
What is the first phase
A
• incremental change : step changes being made by managers to keep up with environmental change
4
Q
What is the second phase
A
• strategic drift
- the difference between environmental change & strategy is starting to grow
5
Q
What is phase 3
A
• Flux
- recognition of issue & uncertain of how to fix it = lost competitive advantage/ fallen behind trends
6
Q
What is the 4th stage
A
• transformational change or demise
- big change happening = business strategy more aligned with environmental changes
7
Q
Give some examples of demise
A
Nokia, Kodak, Blockbuster
- didn’t know how to solve the flux stage
- couldn’t keep up with environmental change
