. A critical literature review on an organizational issue which requires intervention by top strategic team of the organisation.
Strategic change
In the world of new technology, transforming economy, shifting demographic, fluctuating customer taste, and dynamic competition, it is necessary for every company to be able to constantly align with their environments by reacting to external events or by proactive shaping the businesses in which they operate.
Strategic change adopted by a firm and the consequent direction of action is a response to the company's perceived current weakness and the current environment and how that is expected to change. Strategic change may take three main forms which are threatening actions from various sources, arising from the spread of markets occupied by the company, and the speed and variability of such change. Because of the substantial changes in various factors such as economic and business environment, every company has to be able to adjust and adapt themselves to changes in their environments and thereby improve their competitive performance. The importance of these adjustment and adaptation processes is considered to be a crucial aspect of the competitiveness issue which needs to be intervened by the top strategic executive team of an organisation. A company has to assess the changing factors like economic, business and political environment around it, then formulate and implement strategic and operational changes. It is also necessary to have an important input which can lead the company to the maintenance and improvement of competitive performance. According to the McKinsey 7-S model, it can be seen that strategic change in a company affects other six interrelated elements in the organisation's architecture; syst ...