Strategic Change at Chrysler Essay

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Strategic Change:
The case study of Daimler Chrysler


Globalization results in rapid and constant business environmental changes. As a result, most organizations tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. This paper will discuss the nature of strategic change in the first part. The next section is an analysis of Daimler Chrysler case study; whether the strategic change by merger bring them sustainable competitive advantage.

Nature of strategic change
The causes of strategic change
To be effective transformation organization, a company needs to be ready for incessant change of outside
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This situation might affect attitude of entire staff (Chaharbaghi and Willis, 1998). As a result, critical learning is indispensable in this stage to create the atmosphere of understanding the problem of organization and transfer knowledge in order to enhance the ability of making decision in rapid change situation. Besides, this learning process leads to the lower degree of change resistance but higher level of participation which are vital component to achieve strategic change goal (Kenny, 2006). Afterward when employees understand more about the situation, it is time to inform the direction and plan of strategic change. In this step, eventhough the implementation becomes more constant, organization must maintain flexibility for unexpected situation. Finally, when organization is covered with understanding and predictable situation, the normal operation of implementation was brought in to perform (Kenny, 2006). Consequently, it can be concluded from above implementation step, which applies the radical approach when there is a lot of risk and uncertainty and the incremental approach when there is lower scale of risk and uncertainty, is the process of transformational strategic change based on learning for transformational organization

The hardest step of change
According to Zeffane (1996), strategic change needs to well mould
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