Strategic Drift

2437 WordsJul 20, 201310 Pages
University of Technology, Jamaica UTech/JIM School of Advanced Management, Postgraduate Division Doctor of Business Administration Module Title: Global Strategy Exploring Corporate Strategy, Work Assignment 5.1 (page 205) Prepared by: Rohan Anderson 0705654 Facilitator: Dr. Cecil Goodridge Question 5.1 Identify four organisations that, in your view, are in the different phases of strategic drift (see Exhibit 5.2). Justify your selection. Strategic drift, as defined by Gerry Johnson in Exploring Corporate Strategy, is the tendency to develop strategies incrementally on the basis of historical and cultural influences, while failing to keep pace with a changing environment. In such circumstances the strategy of the…show more content…
Starting from the late 80’s Wang Labs lost out when the world shifted from using word processors to PC, however they were blinded by their love for the word processors and made major losses as IBM took the PC to the market. Wang could have raise capital by issuing shares however because he felt that he had given up too much of the company in a similar past transaction he refused and instead opted to seek loans According to Paul Golding, prior to 1999 the Jamaican telecommunications sector was dominated by Cable and Wireless Jamaica (C&WJ), which changed its name in 2008 to LIME (Landline Internet Mobile, Entertainment). In 1988 the company was granted five exclusive licenses each for 25 years, which would be valid until 2013, with options for extensions for a further 25 years. The licenses made C&WJ the sole provider of the island’s domestic and international telephone service and guaranteed an after-tax rate of return of 17.5% - 20%. C&WJ was quite comfortable with the strategies they employed especially as they were a monopoly in these early years. This resulted in the organization being stuck in phase 1 as they became complacent, relying on the same old strategies as technology boomed globally. They were “out of touch” with customer demand and the untapped potential of the market. Liberalization of the telecommunications market commenced with the granting of two new carrier licenses for the provision of

More about Strategic Drift

Open Document