Strategic Thinking and Organizational Adaptation

Strategic thinking

Ongoing process of strategy

Continuous adaptation of organizations

Changing demands and competition

Adaptation factors for organizations

External and Internal changes

Purpose of mission and vision statements

Strategic direction

Vision statement

Long-term perspective

External environments in business

Macro and market

Macro environment

Technological, economic, social, physical, institutional-government, international

Market environment factors

Consumers, competitors, intermediaries, suppliers

External environmental analysis necessity

Identify key impacting factors

Opportunities and threats in SWOT analysis

External factors

Purpose of internal environmental analysis

Identify strengths and weaknesses

Internal environmental analysis method

Assess resources and capabilities

Resources

Cash, factories

Capabilities

Ability to innovate, make products

SWOT analysis

Strengths, Weaknesses, Opportunities, Threats

Porter's generic strategies

Differentiation or low-cost

Differentiation strategy

Unique product for premium price

Low-cost strategy

Producing cheaper than competitors

Cost reduction strategies focus

Cost reduction and efficiency

Advantage of lower costs

Larger profit margin or undercutting

Essential for strategic implementation

Alignment of organization levels

Role of leaders in strategic implementation

Communicate strategy and gain buy-in

Leaders' motivation of employees

Excite and motivate

Leaders must embody

Vision and values of organization

Capabilities of Level 1 leaders

Make productive contributions

Level 2 leaders' contributions

Success of groups

Focus of Level 3 leaders

Organising people productively

Level 4 leaders' commitment

Clear vision

Characteristics of Level 5 leaders

Professional will and humility

Key for leaders implementing a strategy

Level 4

Support needed for chosen strategy

Corporate culture

Routines in the cultural web

Behaviours

Purpose of interactive dashboards

Indicate performance status

Strategic alignment requirement

Fit with external environment

Reason for luxury car brand failure

Depressed economy

Strategy consideration for good fit

Strengths and weaknesses

Internal environment composition

Business and departments

Needed for innovation strategy

Innovation capabilities

Alignment within the organization

Functional areas and management levels

Focus of all functional areas

Same goals

Linking management goals

Top, middle, and bottom management

Generic products location

mature industries

Second decision in strategy

target the whole market or focus on a niche

Focus strategy aim

Achieve dominance within a specific segment

Focus strategy definition

Various strategic options

Past customer satisfaction example

someone going beyond their duty to satisfy a customer

Symbols in an organization

logos, buildings, vehicles and physical manifestations

Office layout indication

culture

Common office layout type

open plan layout

Power structures definition

who has power in an organisation and who can influences behaviour

Impact of power usage

the culture of an organisation

Control systems definition

measurement and reward systems

Task approach basis for employees

how they are being rewarded

Control systems reward focus

speed of work

Organization structure definition

network of formal relationships and power structures

Decision-making empowerment

workers

Organizational paradigm

overall picture of how employees see the organisation

Outcome of ineffective strategy

a change

Possible reasons for strategy failure

the strategy selected, the implementation or the strategic direction

Control method

measuring the performance of the business against the stated goals

Business intelligence systems use

to do this

Information collection by business intelligence systems

collects information from throughout the organization

Types of information

customer transactions, customer surveys, production information

Monitoring performance responsibility

Strategic managers

Popular tool in management

Management dashboards

Consequence of ignoring retention issues

if middle or lower management are only focused on new sales and ignore retention issues