Strategic management is the systematic process of analyzing, coordinating and implementing decisions and action plans to achieve sustainable competitive advantage. The factors that influence changes in strategic management can be internal or external to the business organization. Some of these factors include management functions, structural transformations, competition, socioeconomic factors, laws and technology. Companies use strategic tools, such as a SWOT analysis, to examine strengths, weaknesses, opportunities and threats and to change existing strategies.
Changing strategies will allow you to alter your course by addressing inherent weaknesses and threats. Unconsciously or not, some managers and employees will try to revert back to the way things were and the determination of the leaders will be put to the test. By following these five factors, organizations can successfully manage change and reach their objectives. You must adjust your company's existing strategies to incorporate the requirements of new laws. Your company may modify its strategy due to the availability or lack of adequate technological capabilities.
For example, the growing influence of e-commerce can lead your company to abandon physical distribution strategies and adopt online distribution strategies. Many companies create a strategy based on tools and mechanisms, but they forget to realize that organizations are composed of people with purpose and value. Incoming members of the management team can try to review existing strategies in order to inject new ideas to take the company to the next level. For many, this is a “change management step” that is recorded to the rest of the project documents and checked once finished. The social and cultural profiles of your target markets can cause changes in strategic management.
Changes in the composition of the board of directors or the departure of executive directors influence changes in strategy. Working in companies that implement process optimization, operational improvements and the deployment of strategies has taught us that change is not just about changing culture, but about the way in which culture is oriented towards a personal purpose and is aligned with values, which makesthe fundamental difference. To ensure successful strategic change management, organizations must consider five key factors: management functions, structural transformations, competition, socioeconomic factors, laws and technology. By understanding how these factors interact with each other, companies can develop effective strategies for managing change. Management functions are essential for successful change management. Leaders must be able to identify potential changes in advance and develop plans for implementing them.
Structural transformations involve reorganizing departments or teams within an organization in order to better align them with new strategies. Competition is an important factor as well; companies must be aware of their competitors’ strategies in order to stay ahead. Socioeconomic factors such as consumer trends or economic conditions can also influence strategic change. Companies must be aware of these trends in order to adjust their strategies accordingly. Laws are another factor that must be taken into account when managing change; companies must ensure that their strategies comply with applicable laws. Finally, technology plays an important role in managing strategic change.
Companies must be aware of technological advancements in order to stay competitive. By understanding how these five factors interact with each other, companies can develop effective strategies for managing change.