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    Saroj Raj Upreti Sagar Bhatta Kalika Prasad Marahatta

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    Gift Simau
    1. Transformational change: Business undergoes radical transformation through acquisition, mergers, diversification to align with changing environment. 2. Strategic drift: Gradual deterioration of competitive action where business fails to respond to environmental changes. This occurs in four phases - incremental change, strategic drift, flux, and finally transformational change or death. 3. Death: Business fails to transform and perishes due to inability to align with changing environment.

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    Saroj Raj Upreti Sagar Bhatta Kalika Prasad Marahatta

    Uploaded by

    Gift Simau
    109 views12 pages
    1. Transformational change: Business undergoes radical transformation through acquisition, mergers, diversification to align with changing environment. 2. Strategic drift: Gradual deterioration of competitive action where business fails to respond to environmental changes. This occurs in four phases - incremental change, strategic drift, flux, and finally transformational change or death. 3. Death: Business fails to transform and perishes due to inability to align with changing environment.

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    strategic drift

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    strategicdrift-160830141253

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    1. Transformational change: Business undergoes radical transformation through acquisition, mergers, diversification to align with changing environment. 2. Strategic drift: Gradual deterioration of competitive action where business fails to respond to environmental changes. This occurs in four phases - incremental change, strategic drift, flux, and finally transformational change or death. 3. Death: Business fails to transform and perishes due to inability to align with changing environment.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    109 views12 pages

    Saroj Raj Upreti Sagar Bhatta Kalika Prasad Marahatta

    Uploaded by

    Gift Simau
    1. Transformational change: Business undergoes radical transformation through acquisition, mergers, diversification to align with changing environment. 2. Strategic drift: Gradual deterioration of competitive action where business fails to respond to environmental changes. This occurs in four phases - incremental change, strategic drift, flux, and finally transformational change or death. 3. Death: Business fails to transform and perishes due to inability to align with changing environment.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    Presenters

    SAROJ RAJ
    UPRETI

    SAGAR BHATTA

    KALIKA PRASAD
    MARAHATTA

    STRATEGIC DRIFT
    due to change in environment

    What is strategic drift?


    .
    Strategic
    drift can be defined as gradual

    deterioration of competitive action that results in


    the failure of organization to acknowledge and
    respond to changes in business environment.

    importance
    of understanding strategic drift
    To identify
    external threats 01
    to weaknesses
    of the business
    To understand the
    02
    need of
    acquisition,
    merger, and
    diversification
    To maintain
    03
    existence of its
    own
    To match
    resources and
    potentiality with
    opportunities

    04

    To gain
    05 competitive
    advantage

    To welcome innovation
    06

    To understand

    07 consumer needs
    and expectations
    To comply with
    08 legal policies and
    procedures

    CHANGE
    SCALING

    Environmental change

    Transformation
    al change

    Amount
    of change
    Death

    Phase 1
    Phase 2
    Incremental change
    Strategic drift

    Phase 3
    Flux

    Phase 4
    Transformational
    change or death

    Phase 1 : Incremental
    stage
    03
    01

    02
    Little
    significant
    changes in
    the external
    environmen
    t

    Small
    incremental
    changes in
    business
    strategy

    Business
    remains in
    touch with
    the external
    environmen
    t

    This is the phase where


    business tries to move
    with small changes seen in
    the external environment.
    There is not much
    deviation between
    business strategy and
    environmental changes.

    Why Incremental
    Change?

    Alignment with
    environmental change

    Experimentation of new
    ideas and strategies
    s

    The success of
    past

    Phase 2: Strategic
    Drift
    This is the phase where small, incremental

    changes in business strategy fails business


    to move with rapid changes in the external
    environment.

    1Homogeneous mindset
    2

    Preservation of status
    quo

    Lack
    3 of focus on external environ

    5 Reasons for
    Strategic Drift

    1
    2

    The problem of
    hindsight
    It may
    be easy to see major
    changes with hindsight, but it may
    not be easy to see their significance
    as they are happening.

    Building on the
    Managersfamiliar
    try to minimise the extent
    to which they are faced with
    uncertainty by looking for answers
    that are familiar.

    3
    4

    Core rigidities
    The core capabilities may become
    a limit. The formula of success is
    hard to imitate by competitors but
    it may provoke a routine, making
    the habits of the business hard to
    question.

    Relationship
    becomes shackles

    The success of a company is


    based on an excellent
    relationship between customers,
    suppliers, and employees.

    Lagged
    performance
    First symptoms
    effectsof strategic drifts
    are hard to identify. However,
    once the shortcomings of a
    business are identified, it

    Ways to Avoid
    Strategic Drift
    Encourage diverse
    perspective
    Continuous innovation
    Promote an external
    focus
    Industry benchmarking & market
    research
    Monitor performance

    Phase 3 : Flux
    Declining
    performance & low
    employee morale
    Fluctuation in
    strategies but not
    in clear direction

    1
    2

    Top management
    conflict and
    managerial changes
    Internal
    disagreement on
    right strategies and
    morale
    Customers
    becoming
    alienated

    4
    5

    3
    This is the phase where there is huge gap
    between strategy of the business and
    requirement of the environment.
    Management tries to minimize such gap but
    efforts turn out to be indecisive.

    Phase 4 :
    Transformational
    change or death

    The 3
    possibilities

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