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Submitted by hartmann on November 9, 2006
Category: Business
Words: 2988 | Pages: 12
Views: 270
Popularity Rank: 36,537
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Introduction
There is indications that in the coming years the business environment will change more frequently, with higher speed and with greater intensity than before. To remain competitive in the long run the enterprises needs to meet these environmental changes. However, the changes in the environment will become increasingly difficult to foresee. A multitude of management concepts has been developed to provide managers with better receipts to meet this changing business environment and the problems that arise (Pfeifer, Schmitt, & Voigt, 2005). This challenges the enterprises to meet and conquer upcoming situations with the, for their explicit situation, suitable strategy. What goals an enterprise striving after might will with no doubt matter when forming strategy. A common goal for most, if not all, of today’s organisations is to create sustainable competitive advantages. However, because of the fierce competitive environment and the risk of imitation, it is crucial to seek for continuous innovation if the organisation is to succeed on the market. To avoid getting in a situation doing just what the competitors do, a way is to break the rules of the market by strategic innovation (Jacobs & Heracleous, 2005), thus a change of the organizations’ strategy.
Strategic change as a subject has for long become a question of importance, within the strategic management field. The reason to why strategic change is important is “because it represents the means through which an organization maintains co alignment with shifting competitive, technological and social environments” (Kraatz & Zajac, 2001). Strategic change can though damage existing resources and performance especially among organizations highly dependent on human resources, these organizational resources decrease the propensity to adapt strategic change, because of new roles, tasks and circumstances (Kraatz & Zajac, 2001). Strategic change is nothing that will be carried out without...
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