The business environment is characterized by a number of variables competition, dynamics, turbulence, complexity and change. All organizations must develop the ability to continuously and consciously transform themselves and their context. Such contexts include restructuring for optimum efficiency, reengineering key processes and streamlining that can give a competitive edge. The purpose is to adapt, regenerate and most important, survive. McLean, 2006.
For a business to enjoy today, the strategists need to find ways to increase the organizations ability to read and respond to industry and market change. They must know their goal of increasing the companys strategic flexibility by recognizing disturbances in the past and reacting more quickly.
Strategic flexibility or adaptability can be defined as the organizations ability to identify major changes in its external environments, quickly commit resources to new action options in response to such changes, and to recognize and act quickly when it is time to stop or reverse existing resources commitments. Being adaptable means that leaders do not get caught up in an overly rigid way of looking at the world. The organization must see change as an inevitable and essential part of an organizations growth to achieve this adaptability.
When there is uncertainty or unpredictability in the environment, managers tend to focus almost all their energy on successfully implementing the current strategy. What they should also do is prepare for an unknown future. Flexibility stems from the ability to learn managers tend to overlook the negative and stress the positive. They need to understand not only what led to the positive results but also what led to the negative. This will optimize their learning experience. According to Ford 2004, four points to promote and maintain adaptability are challenging self-confidence, give all employees a voice, encourage participatory work and drive fear of your group.
The companies chosen for this task vary according to industry a famous car manufacturer Ford, a bank that runs through a merger Compass and a launcher software company DawningStreams. Ford and Compass have been on business for a long time It is likely that they have changed their strategic plan based on changing forces and trends. DawningStreams is new established 2005 and incorporated in 2007. Even though they have not had their first sales and no staff, the owners have developed several iterations of their strategy.
There are a multitude of stakeholders who are interested in the business organizations business. Emphasis must be placed on their adaptability in strategic analysis and adaptability in strategic management of corporate organizations. The organization must have a strategic management model.
Each company can scan the same areas, but for different reasons. In terms of technological advances, Ford was preparing to lead the market by having different electronic equipment in its vehicles, as well as robotic equipment to build them and the supply chain to keep everything in control. Compass Bank is going through a merger and expansion globally Therefore, they have to deal with communication technology.
Regarding the legal environment, all three must be aware of laws affecting, inter alia, their respective industries. To Ford applies to including environmental protection legislation and the Department of Transport Safety Acts. To Compass Bank, they would comply with the Federal Reserve and Federal Insurance and Deposit Corporation. DawningStreams must comply with laws as they refer to the transfer of files, which have intellectual property rights and also export of products that have algorithms. All three companies are global and will need to monitor these laws in other countries, which may affect strategic planning.
In such a world, we need a planning model that allows us to anticipate the future and use this expectation in an analysis of our organization - its culture, mission, strengths and weaknesses - to define strategic issues, to map our direction by develop strategic visions and plans, to define how we will implement these plans and to specify how we evaluate how well we implement these plans. The fact that the world changes as we move forward in the future requires the process to be an iterative.