Strategic Management Midterms

It acts as a stimulus for a change in strategy. These ____ are critical when an organization is in the search mode, looking for the next customer, and when they need to identify sales opportunities at a particular company.

·         A change in strategy may involve a newly appointed officer who will spend a ton of time meeting with employees to get their perspective on the company, what’s working, and what’s not.

·         A change in strategy may involve a gap that exists when performance does not meet expectations. Poor performance of a few employees can have a damaging ripple effect across the entire business, resulting in a widespread loss of motivation, productivity, a decrease in customer satisfaction, and decreased sales.

A change in strategy may involve a different business that initiates a takeover by buying or merging a company’s common stock or share. Business owners sometimes encounter life-changing experiences that can trigger significant changes in the desire to own and manage a business, or the company is simply facing bankruptcy.

·         A change in strategy may involve alterations in the supply chain, including demand, supply, and environmental risks. Unpredictable customer demands cause demand risks, while interruptions cause supply risks to the product flow, including raw materials in the supply chain. The environmental risks are usually related to economic, social, governmental, and climate factors, including the threat of terrorism and the global health crisis.

·         A change in strategy may involve a major alteration in the company due to the introduction of new or disruptive technologies, a different regulatory environment, a change in customers’ values, or a change in customers’ preferences.

·         Strategic decisions are unusual and typically have no precedent, guidelines, or previous examples to follow.

·         Strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels.

Strategic decisions set precedents for lesser organizational problems and future actions throughout an organization.

·         This states that one powerful individual makes strategy. This mode focuses on the opportunities and growth, not business problems. Strategy is guided by the founder’s vision of direction and is exemplified by large, bold decisions. The dominant goal of this mode is the growth of a corporation.