Strategic Drift: Concepts and Phases

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Key drift concepts

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Mrs Deepashree P

India

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Strategic Drift: Concepts and PhasesVersión en línea Key drift concepts por Mrs Deepashree P 1 Which type of organisation is likely to operate in a single market with a limited product range, with founders' views dominating? a Voluntary and not-for-profit sectors b Small businesses c Public sector d Multinationals 2 Which type of organisation is likely to operate in many diverse markets with a wide product range and requires corporate and business unit strategy coordination? a Voluntary and not-for-profit sectors b Small businesses c Public sector d Multinationals 3 “Strategic drift” describes a situation where an organisation's strategy gradually, often imperceptibly (without being noticed), moves away from the changes taking place in its external environment. a True b Only in the public sector c False d Only when changes are rapid 4 Phase 1 in the stages in strategic drift is described as a Flux b Strategic drift c Incremental change d Transformational change or demise 5 Causes of strategic drift can include the impact of any new technologies, managerial tendencies, the power structure, and the effect of politics. a Only managerial tendencies and politics b False c True d Only the impact of new technologies 6 To avoid strategic drift, it will be vital that an organisation regularly assesses its environment, has flexible systems, breaks down barriers to change, has a clear mission, and has strong leaders. a False b Only Regular assessment and mission are needed c Only strong leaders are needed d True 7 Illustration: Blockbuster failed in part because it declined to go online and turned down offers to buy Netflix, preferring its existing business model. a True b Blockbuster acquired Netflix c False d Blockbuster invested heavily online

Strategic Drift: Concepts and PhasesVersión en línea

Key drift concepts

por Mrs Deepashree P

Which type of organisation is likely to operate in a single market with a limited product range, with founders' views dominating?

Voluntary and not-for-profit sectors

Small businesses

Public sector

Multinationals

Which type of organisation is likely to operate in many diverse markets with a wide product range and requires corporate and business unit strategy coordination?

Voluntary and not-for-profit sectors

Small businesses

Public sector

Multinationals

“Strategic drift” describes a situation where an organisation's strategy gradually, often imperceptibly (without being noticed), moves away from the changes taking place in its external environment.

True

Only in the public sector

False

Only when changes are rapid

Phase 1 in the stages in strategic drift is described as

Flux

Strategic drift

Incremental change

Transformational change or demise

Causes of strategic drift can include the impact of any new technologies, managerial tendencies, the power structure, and the effect of politics.

Only managerial tendencies and politics

False

True

Only the impact of new technologies

To avoid strategic drift, it will be vital that an organisation regularly assesses its environment, has flexible systems, breaks down barriers to change, has a clear mission, and has strong leaders.

False

Only Regular assessment and mission are needed

Only strong leaders are needed

True

Illustration: Blockbuster failed in part because it declined to go online and turned down offers to buy Netflix, preferring its existing business model.

True

Blockbuster acquired Netflix

False

Blockbuster invested heavily online

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Strategic Drift: Concepts and Phases

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Strategic Drift: Concepts and PhasesVersión en línea

por Mrs Deepashree P

Which type of organisation is likely to operate in a single market with a limited product range, with founders' views dominating?

Which type of organisation is likely to operate in many diverse markets with a wide product range and requires corporate and business unit strategy coordination?

“Strategic drift” describes a situation where an organisation's strategy gradually, often imperceptibly (without being noticed), moves away from the changes taking place in its external environment.

Phase 1 in the stages in strategic drift is described as

Causes of strategic drift can include the impact of any new technologies, managerial tendencies, the power structure, and the effect of politics.

To avoid strategic drift, it will be vital that an organisation regularly assesses its environment, has flexible systems, breaks down barriers to change, has a clear mission, and has strong leaders.

Illustration: Blockbuster failed in part because it declined to go online and turned down offers to buy Netflix, preferring its existing business model.

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