The competitive, technological, political and socio-cultural environment

Between period t0 and t1, the operating environment is static, and the organization illustrated makes no policy change, so that by the end of the period, at t1, organizational policy at B is in tune with the environment at A. However, the period t1 to t2 represents a period of dynamic change in the operating environment. The organization, however, undertakes only marginal policy change so that by the end of the period it is experiencing strategic drift, represented by the distance CD.