Business – 6.2 Business strategy – Corporate planning and implementation | e-Consult
6.2 Business strategy – Corporate planning and implementation (1 questions)
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Definition: Strategic change refers to a significant shift in an organisation’s overall direction, scope, or competitive positioning that affects its long‑term objectives and the way it creates value.
Why it must be managed: Without deliberate management, strategic change can lead to resistance, loss of momentum, misallocation of resources, and failure to achieve the intended strategic outcomes.
Internal drivers:
- Leadership turnover or a new vision from senior management.
- Performance gaps identified through internal audits or financial shortfalls.
External drivers:
- Technological advancements that render existing processes obsolete.
- Regulatory changes or shifts in market demand that alter competitive dynamics.