Change – shaping strategy For Small Businesses
Change is an accepted consequence of modern life. Indeed, the phrase – ‘change is the only certainty’ – has become something of a business mantra. All organisations are subject to increasing levels of change. We can view change in terms of cyclical change and evolutionary change. Cyclical change involves variation that is repetitive and often predictable (e.g. seasonal variation in demand or fluctuation in economy circumstances). Evolutionary change involves a more fundamental shift. It may mean sudden innovation or a gradual ‘creeping’ process. Either way, the result can have drastic consequences for strategic development.
Establishing Organizational Capability
Organizational capabilities will be made up of specific assets and competencies. The key areas to identify are where the organization is superior to the competition. In summary, assets are organizational attributes, tangible or intangible, that can be utilized to gain advantages in the market. Obviously assets should not be viewed in isolation, it is also important to establish any competencies that give the organization advantages. The value chain is a useful framework to use to identify these areas of unique competence. Key competencies may lie in primary activities. These include activities such as in-bound logistics (e.g. inventory control), operations (e.g. manufacturing), out-bound logistics (e.g. global delivery), marketing (e.g. brand development) and service (e.g. installation).
