Strategic Change QUESTIONS WITH ALL ANSWERS 100% CORRECT

Strategic Change Strategic change - - ANS directed to aligh a new fit between the firm's set-up and the characteristics of the environment Areas of strategic alignment: - ANS Business model Organizational system Business model - - ANS the way the org conducts its business: input, added value, product Organizational system - - ANS the way the company gets its people to work together to carry out the business Organizational system: - ANS Org. members Org. structure Org. process Org. culture Magnitude of change - - ANS the size of the change steps -the scope of the change -the amplitude of change The scope of the change - - ANS how man aspects and parts of firm will be changed. Narrow-Broad changes The amplitude of change - - ANS how radical change is from original situation Low-High Pace of change: - ANS -timing of change -speed of change Tension Chapter 8. - ANS Revolution-Evolution Revolution - - ANS disruptive change, frame breaking, radical over short perion of time, when small pushes dont bring the result Sources of organizational rigidity: - ANS Psychological Cultural Political Investment lock-in Competence lock-in - former advantage can become the weakness System lock-in Stakeholder lock-in Reasons for revolutionary strategic change: - ANS Competitive pressure Regulatory pressure First-move advantage Evolution - - ANS constant stream of moderate changes gradually accumulated over a long period of time -Constantly modifying aspects through extension & adaptation -learning is the most important when none can push through revolutionary changes -avoidance negative sides of revolution Discontinuous alignment perspective - ANS str change encounters resistance more significant the change is - more significant the shock if firm hd success it will keep sticking to the same strategy Level of stability is needed for the effective functioning TOP MANAGEMENT DECISION