Strategic renewal and the interaction of cumulative stress and inertia
Article Abstract:
Strategic renewal refers to the continuous evolution of an organization in response to internal and external demands. It is proposed that strategic renewal is driven by the tension between two states of dissatisfaction: inertia and stress. Inertia covers a wide spectrum of variables that preserve the status quo, including personal commitments, finanical investments and institutional mechanisms. Stress results when the organization's present strategy is incapable of responding to current demands on the organization. Four organization activities that result from and give rise to various relationships between stress and inertia are described. These activities are the gradual adaptation within the framework of extant strategy, the decision to make radical changes in strategy, the consideration of renewal alternatives, and the trial and evaluation of the new strategy.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Using simulated mergers to evaluate corporate diversification strategies
Article Abstract:
Simulation methods can be used to show the effects of diversification on corporate performance after mergers. Results suggest that conglomerate strategies should focus on fewer and larger units in order to reduce risk. Accounting benchmarks are provided that can be used to evaluate various business combinations. A risk-reduction rationale for unrelated mergers is presented, suggesting that absolute size and scope effects may be important variables in merger decisions.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
The industry context of strategy, structure and performance: the U.K. brewing industry
Article Abstract:
Influences are identified on the competitive performance of British brewing industry firms. Key strategic qualities are related to firm performance and moved toward an explanation of what affects competitive standing. It is suggested that diversification strategies must be examined as a part of industry structure. A comparison is made between the experiences of large US and British firms.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Steps that can reduce the impact of the tax on a child's unearned income. Immediate action needed to protect taxpayers' interests under economic performance rules
- Abstracts: Practice promotion and the consultant. An alliance based on understanding. There's lots of expert guidance around
- Abstracts: Rate cuts, return of standard deduction only two of the many changes affecting individuals
- Abstracts: S corporations: eligibility to elect and taxation of capital gains subject of new regs. part 2 Tier system for S corporation distributions can be used to reduce tax to shareholders
- Abstracts: Voluntary disclosure choice and earnings information transfer. An empirical analysis of the regulation of the defense contracting industry: the Cost Accounting Standards Board