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Strategic Change - Types of Change

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Strategic Change
Question 1: Discuss the types and importance of context in managing change and how they can affect an organisation’s strategy. Use examples to illustrate your points.

All organisations are currently experiencing some type of change. Many of these strategic changes arise from culture change, globalisation, business process and some of them are driven by the need for organisations to reposition in order to be efficient in competitive environment. Therefore, it can be noted that competitive advantage is the goal of strategic change.

There is no easy way to manage strategic change, and no simple method that will work in all cases. How change is managed will be subject to the magnitude of the challenge faced in trying to effect strategic change. So, it is important to recognize consideration of change types and organisational context in which change is to occur.

Types of strategic change:

There are four types of change that concerned with the extent and the nature of change. In terms of the nature of change, it is the speed with which the change is to be achieved, where changes can be based incremental or big bang approach. Arguable, it is more efficient for change in organisation to be incremental as it will give plenty time to build skills and beliefs in organisation. Nevertheless, big ban approach might be useful if organisation requires quick responses on crisis or direction changes. The extent of change required ranges across a spectrum from realignment to transformation. Transformation is fundamental change of organisation’s culture, for example: UK retail banks have been experienced such shift over 10 years by moving from focus on organisations that are concerned with safe and secure lending to more customer focused retail organisations. On the other hand, realignment is not so fundamental change that occurs in line with the...

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