The paper "The Concept of Discontinuous Change and Its Rrelevance to Strategic Management" is an outstanding example of an essay on management. Business environments are constantly changing due to shifting Political, Economic, Social, Technological, and Legal and Environmental factors. How well an organizations strategist react to rapid, volatile and discontinuous change impact the survival and the performance of the firm in the long term. In this paper we analyse the concept of discontinuous change and its relevance to strategic management. Secondly, the models used to scan and respond to changes in both the external environment are presented.
Thirdly, the role of CEOs in responding effectively to discontinuous changes is presented. Finally, the paper presents examples of business leaders who have ensured their organization’ s success by responding appropriately to discontinuous changes. Introduction The business environment today is characterised by rapid, volatile, discontinuous change. Globalization and rapidly changing technology especially in Information Communication technology continue to change the way businesses is conducted even as we speak (Mason, 2006). Most business environments are now characterized by intense rivalry and adopting to change is critical for survival and realization of competitive advantage.
Businesses have to constantly adapt to change if they hope to sustain good returns in competitive markets. The rapid change in business environment means that strategic management now plays a more critical role in the success of businesses. While firms have to make decisions, plans and commitments focused on the future the importance of strategic flexibility cannot be ignored. Organizational strategist must constantly scan the external environment for changes that might disrupt their businesses and adopt accordingly. An organization has to fast capitalize on opportunities that arise in the market and respond to threats that might affect its market share. In this paper we analyze the concept of rapid, volatile and discontinuous change and how it impacts on the strategic management process.
First, we introduce the concept of change and how it affects business. Secondly, we link the concept of change to strategic management. By use of Rational or Formal model we are able to show how business leaders can be able to react to rapid, volatile and discontinuous change in their industries. 2. The Concept of rapid, volatile, and discontinuous change The last few decades have seen rapid changes in the world in terms of technological development and globalization.
Change remains the constant factor in the world and businesses should be aware nothing is bound to stay the same for long. Robbins (2007) asserts; “ What seems impossible yesterday is commonplace today, or will be tomorrow” .Change in all facets of life can affect the way firms do their businesses including Political, Economical, Social, Technological and Environmental Changes. The 2007 global financial crisis and its future policy implications are some of the changes in the economic and political environment that affect business strategy development.
Changes in the Competitive environment are also another variable in the business environment that organizations have to watch out for. Strategists must remember that competition has gone global and have to watch out for threats to their business by foreign competitors (Christensen and Overdorf, 2000). The entry of new entrants in national markets is one of the discontinuous changes organizational strategist should continue to keenly monitor.
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