chapter  3
19 Pages

The impact of change on organizations

Organizations have to make strategic choices about how to respond to the change drivers described in the previous chapter. They may decide, for instance to introduce a new product or service, open a new plant or facility, expand operations to enter a new market, discontinue a product or withdraw from a market, acquire or merge with another firm, or change the strategy in functional departments. Strategic choice therefore inevitably produces organizational change. Indeed, unless organizations continue to adapt to changes in their environment, they are likely to enter a phase of ‘strategic drift’ (Johnson, 1988), characterized by lack of clarity, confusion and deteriorating performance.