Academic journal article International Journal of Management

Survey of Recent Developments in Strategic Management: Implications for Practitioners

Academic journal article International Journal of Management

Survey of Recent Developments in Strategic Management: Implications for Practitioners

Article excerpt

This paper is a survey of recent developments in the field of strategic management. Specifically, this paper argues that recent political, economic, and social changes, among other things, have had relatively little impact on operations in organizations, but have made a big difference to the planning and strategic aspects of management. The analysis and synthesis of the recent developments in strategic management developed in this paper argues that strategic management is entering 'a new era' in which (1) stakeholders interests are more important than before and (2) there is a greater concern for social responsibility than ever before. According to the analysis, these features of the new era are deep and pervasive trends that are much more than just responses to recent events such as corporate scandals.

Introduction

For most organizations the transition from the twentieth century to the twenty-first has had little significance in terms of change of operations. However, the new millennium has brought on new conditions that necessitated new planning and other management processes. Dess and Lumpkin (2001) has well documented the emerging issues in strategy-making processes. The massive managerial advances (known as the reengineering or re-structuring era) brought about in the 1 990s (Bowman and Singh 1 993) was quickly overshadowed by first the collapse of the dot com economy and second by the September 1 1 , 2001 destruction of the World Trade Center in New York and the ensuing Iraq war and recently the stock options backdating.

Both of the foregoing events resulted in loss of faith in what was called the "New Economy" and the loss of faith in institutions and economic agreements that had dominated international relations for over half a century (The Economist 1 996). As a result, the fall-out for the business world was considerable. The world

economy was plugged into a recession in the early 2000s and U. S. Government's war on terrorism resulted in increasing trends towards "unilaterism" which consequently reversed many of the trends towards closer integration of the world economy. Hoskisson et al. (2001) have abundantly clarified that restructuring was taking place in most emerging economies as well during this time.

All of these events, whether domestic or international, imply that planning for the future is becoming harder and harder. Strategy managers across the spectrum need to re-assess their traditional planning processes. Need for new means or tools of scanning the different systems operating in any organization's external environment are becoming increasingly important. New forecasting techniques need to be established to address the emerging instability and volatility of world markets. Expecting the unexpected in all aspects of an organization's environment should be the rule rather than the exception as it used to be in the twentieth century economy. According to Lurie's (2004) research, even the consumers are facing different decision making approaches in this informationrich environments.

The purpose of this paper is to review recent developments in strategic planning processes and understand their implications for both strategy scholars and practitioners. First a review of some of the new developments and trends which have been shaping up the early part of this millennium are presented. Then, implications for strategic planning of those developments are analyzed. These implications are hoped to be helpful to strategy managers in generating new ideas that more than likely will reshape our thinking and strategies on how to cope with this era of high uncertainty and rapid change.

Quo Vadis from Here

Alan Greenspan, the former Chairman of the US Federal Reserve Bank, dubbed the phrase "irrational exuberance" in the late 1990s in describing the new economy of the dot com era then. At the heart of the new economy was a subtle shift taking place in corporate America. …

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