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Study to Evaluate that Strategic Issues Faced by Managers in Different Organisations Depend on their Business Context

Introduction

Due to a rapidly changing business environment an organisation requires a dynamic strategic planning process and flexible use of resources (Richard A. Swanson, 1995).

An effective design of strategy involves rearranging of the established categories as well as inventing new ones (Henry Mintzberg, 1994). This theory is supported by the example of health care industry. The problems that plague this industry has changed over the last thirty years and thus the management has changed its strategies accordingly (Lee Graf, Masoud Hemmasi ,Kelly C. Strong ,1996) The focus now is more on internal efficiency assessment, strategy formation and planning instead of revenue enhancement and domain expansion. Strategy is therefore not static (Lee Graf, Masoud Hemmasi, Kelly C. Strong, 1996) and firms should use a combination of deliberate and emergent strategies (Henry Mintzberg and James A. Waters, 1985). While a deliberate strategy will enable an organization to exercise central direction and hierarchy, emergent strategy will allow them to act before the situation is completely clear (Henry Mintzberg and James A. Waters, 1985). From the three case studies it is evident that emergent strategies are crucial and more appropriate for an organization's growth and success in a dynamic business environment.

The shift from a planned strategy to emergent strategy requires change in the organizations. This research shows that executives are experiencing changes in their work environment on a continual basis (J. Davidson Frame, 2002). The author's survey reveals that a large number of employees see substantive change in their own job responsibilities in a span of one year. On the same note the organizations can choose to implement the changes intelligently by using Lewin's three step method (Bernard Burnes, 1996). More organisations now believe that organisational change is a continuous and open-ended process and have replaced the old planned approach of change. The new emergent model of change is more suitable for the dynamic and uncertain business environment. Since there is no one best way for all organisations the firms should choose their operations according to their specific situation. Additionally, the organization has to make sure that their adopted approach matches their circumstances. The organizations should not mechanically choose an approach but decide after careful evaluation of the circumstances under which the change takes place (Bernard Burnes, 1996).The organisations should therefore design their strategies according to their business context. By designing strategies according to their capabilities and business situations they are more likely to enjoy success similar to BMW and Honda.

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