Strategy Formulation

University of Fredericton |

Report on Strategy Formulation |

EMBA 604Irfan Chughtai |

Today’s Organizations

Today’s businesses are getting increasingly complex and diverse. Globalization, technological changes, knowledge management and cross boundaries collaboration are four factors that are major forces creating change in organizations today. These changes affect decision-making as organizations are forced to recognize that they need leaders who are innovative, creative visionaries who understand the various environments that their organizations are operating in, and are able to differentiate between these different environments.

These environments include: the external or operating environment; the competitive environment and the macro environment in which influences such as the economy, government regulations, societal values, demographics and technology come to bear upon an organization. The external influencers included talents and the skills in the workforce, global competition, faster and more disruptive change within the industry, and technological developments. In today's world, organizations are very different due to competitive pressures and technological breakthroughs. Organizations today are:

* leaner and more agile

* more focused on identifying value from the customer perspective

* more tuned to dynamic competitive requirements and strategy

* less hierarchical in structure and decision authority

* less likely to provide lifelong careers and job security

* Continually reorganizing to maintain or gain competitive advantage. (Judith Heerwagen, Ph.D., J.H. Heerwagen & Associates, 2010)

Today’s businesses face unique challenges. Leaders are confronted with increased competition, globalization, and demand for growing social responsibilities, technological changes, and new strategic thinking. These need to be managed to build and sustain a high-performance organization. There are five integrated components of a...