STRATEGIC DRIFT

Question 1

When is strategic drift

Answer 1

Strategic drift occurs when a company’s strategy is no longer suitable given changes in the internal or external environment

Question 2

EXAMPLE of strategic drift

Answer 2

An example of this would be Toys R Us - These types of businesses aren’t really used by children anymore - Due to Ipads, Iphones, the internet etc.

Question 3

When does strategic srift occur

Answer 3

The external environment changes when the strategy does not

Leaders display interia / are unwilling to change

Failure to analyse the internal/ external environment clearly

Failure to review execution of strategy

Organisational culture does is not conductive to change

Question 4

Look at the graph

Answer 4

https://docs.google.com/document/d/1VZVv6lRAikSl7EVzP6dMZ1wYc4ocynMf-IBGBO4m0Os/edit

Question 5

What is phase 1

Answer 5

Phase 1: The organisational sets it’s strategy, and may make incremental changes to it

Question 6

What is phase 2

Answer 6

Phase 2: Strategic drift sets in as the strategy is no longer fit for purpose

Question 7

What is phase 3

Answer 7

Phase 3: Decline in performance and strategic drift identified. Interia (inertia = dency to do nothing or to remain unchanged) and lack of understanding may lead to a period of flux

Question 8

What is phase 4

Answer 8

Phase 4: Transformational change made to the strategy to realign with external environment