Managing strategy in turbulent environments

Citation

Perrott, B.E. (2009), "Managing strategy in turbulent environments", Strategic Direction, Vol. 25 No. 5. https://doi.org/10.1108/sd.2009.05625ead.005

Managing strategy in turbulent environments

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 5

Perrott B.E.Journal of General Management, Spring 2008, Vol. 33 No. 3, Start page: 21, No. of pages: 10

Purpose – Describes a process for managing corporate strategy and strategic issues. Design/methodology/approach – Emphasizes increasing turbulence in business environments, defines strategic issues as external or internal events or forces that impact the organization’s ability to achieve objectives, and outlines three company examples, i.e. Hewlett-Packard, Xerox and Yahoo, where boards and executives failed to address strategic issues and set future strategic direction. Classes environmental turbulence as repetitive, slow-incremental, fast-incremental, discontinuous-predictable and discontinuous-unpredictable, lists variables affecting business environments, e.g. technological change, and suggests responses to different levels of environment turbulence as regular periodic planning, periodic planning with strategic issues management, and use of a strategic planning framework with dynamic strategic issue management. Depicts how strategic and capability gaps occur between the business environment, business strategy and business capability, sees marketing as a core capability, and lays out a strategic issue management process for understanding the current position. Advocates conducting an issues workshop using the environment-strategy-capability framework, categorizes external issues as opportunities and threats, and internal issues as strengths and weaknesses, bases issue assessment on an issue’s potential impact and urgency, and illustrates a 3x3 matrix for prioritizing strategic issues. Originality/value – Adds to strategic management tools and techniques.ISSN: 0306-3070Reference: 38AC321

Keywords: Business environment, Competences, Corporate strategy, Management techniques, Strategic Management, Turbulence